Equal Pay Day: Why Legal Compliance Isn’t Enough

Today is International Equal Pay Day, a reminder that compliance with the law is only the starting point when it comes to closing the wage gap.

The Limits of the Law

At first glance, it may seem like existing legislation covers the issue of equal pay. But when you look closer, there are significant gaps:

1. Employment Standards require equal pay for equal work between men and women—but there are many exceptions. Pay can legally differ based on seniority, merit, productivity, or even nepotism. And the law doesn't deal with the gap experienced by gender diverse folks.

   
   

2. Human Rights law prohibits pay discrimination on protected grounds such as sex, race, disability, or age. However, the same exceptions that apply under Employment Standards still come into play.

   
   

3. Pay Equity laws go further by requiring equal pay for work of equal value. This means comparing male- and female-dominated jobs, assigning points, and raising pay where needed. But this approach doesn’t address gender-neutral jobs or disparities within the same job classification.

The Bigger Issue: “Grhttp://Dr.bookeedy Jobs”

As Nobel laureate Claudia Goldin highlights, most of the gender pay gap doesn’t come from overt discrimination—it comes from the structure of work itself.

So-called “greedy jobs” demand long hours, late nights, and inflexible schedules. When couples have children, both parents can’t realistically take on these roles. To maximize family income, couples specialize: one partner takes the demanding job (often the man, due to cultural norms), while the other takes a more flexible role (often the woman).

The result? The partner in the inflexible job racks up seniority, merit increases, and productivity bonuses (not to mention the (generally) higher base salary). Meanwhile, the partner in the flexible role falls behind. These legally justified pay differences quietly widen the gender wage gap.

And the issue isn’t limited to gender. Employees with disabilities, caregiving responsibilities, or other needs are also disproportionately penalized by a lack of workplace flexibility.

(Check out Dr. Goldin's book to learn more about the impact of greedy jobs on the wage gap.)

The Takeaway (for Equal Pay Day and Everyday)

It’s not enough to be legally compliant to achieve equal pay. True progress requires more than checking the box on employment standards—it means redesigning work with fairness and flexibility at the core.

That’s how we close the gap for good.

Contact me to discuss strategies for closing the gap at your workplace.