Pay equity refers to pay structures intended to eliminate gender- and race-based discrimination and bias by offering all people equal employment opportunities. When organizations set wages, they must remain impartial towards sex and race-based criteria. 

Not only does equal pay matter for the sake of equal opportunity in the workplace, but it also affects the overall quality of work an organization can produce. Pay equity can also increase overall happiness and productivity within the workplace. Organizations must begin looking closely at these equal pay measures to ensure they set themselves up for success. 

Pay equity audits allow organizations to assess their current pay structure to see whether there are disparities that need addressing. Organizations should conduct frequent pay audits to ensure all pay structuring is considered equal as defined by the Equal Pay Act. By addressing these issues regularly, employers can ensure they are compliant with all pay equity standards. 

Related Terms: Diversity, Equity, and Inclusion