Pay discrimination occurs when employees performing the same or substantially similar work are compensated differently based on protected characteristics such as gender, race, or ethnicity, which violates equal pay laws.
Why Discrimination is Correct:
Paying women less than men for the same work is a clear violation of laws such as the Equal Pay Act of 1963 (U.S.) and similar international legislation. This constitutes pay discrimination.
Eliminating Incorrect Options:
A. Policy: A pay policy describes an organization’s guidelines for compensation; discrimination is not a policy.
B. Disparity: While disparity refers to differences, it does not inherently imply unlawful or discriminatory practices.
C. Philosophy: Pay philosophy outlines the organization's approach to compensation but does not address unlawful practices.
International HR References:
Equal Pay Act of 1963 (U.S.)
ILO Equal Remuneration Convention (No. 100): Calls for equal pay for equal work.
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