Equal Pay Act of 1963

Correct Answer: a seniority system

Under the Equal Pay Act of 1963, wage differentials between employees of the opposite sex are permissible if they are based on a seniority system, a merit system, an incentive system, or any factor other than sex. A seniority system means that the wage differences are based on the length of time the employee has been employed. This is a permissible reason for different pay levels, as it is based on a neutral factor that is unrelated to the sex of the employee. On the other hand, a competitive bidding process is not a recognized exception under the Equal Pay Act. Competitive bidding usually refers to a situation where external vendors bid for contracts, and it does not directly relate to the internal wage policies set by the employer for its employeesA performance-based pay scale might sound like a merit system, which is indeed a recognized exception; however, performance-based pay must be administered without bias towards gender. If a performance-based pay scale results in wage disparities that cannot be justified by actual performance differences, it still may not comply with the Equal Pay ActLastly, a cost-of-living adjustment calculation is designed to adjust salaries based on inflation and other economic factors and, like competitive bidding, is not a recognized exception under the Equal Pay Act with respect to wage equity for equivalent workTherefore, the correct exception and permissible reason for wage differential under the Equal Pay Act is a seniority system.

Correct Answer: Seniority or merit-based systems

The correct answer is "Seniority or merit-based systems." Under the Equal Pay Act of 1963, employers are legally permitted to establish different pay rates for employees performing substantially equal work based on factors such as seniority or merit. These systems ensure that pay differences are based on objective measures of experience and performance. On the other hand, using educational qualifications or geographical location as a basis for pay differences is not specifically addressed by the Equal Pay Act, and basing pay on the age of employees is prohibited under other anti-discrimination laws.

Correct Answer: Length of service with the employer

The Equal Pay Act of 1963 mandates that men and women in the same workplace be given equal pay for equal work. The jobs do not have to be identical, but they must be substantially equal, and job content (not job titles) determines whether jobs are substantially equal. The Act provides exceptions where wage disparities are permitted if they are based on: a seniority system, a merit system, or a system which measures earnings by quantity or quality of production. Length of service with the employer is not explicitly mentioned as an acceptable factor for pay disparities under the Equal Pay Act. Hence, 'Length of service with the employer' is NOT a legitimate reason for pay disparities and is the correct answer. The other provided answers ('Seniority system that rewards employees', 'Merit system that measures earnings by quantity or quality of production', and 'A system which measures earnings by quantity or quality of production') are all legitimate reasons for pay disparities under the Equal Pay Act, so they are not the correct choices for this question.