If an employer has a merit pay system in place, that rewards employees based on productivity, and the result is that, on average, women employees earn less than men employees, the system is illegal under Title VII.

Question

Quizplus · Accepted Answer

Merit pay systems are not inherently illegal under Title VII, but if they result in discrimination based on sex, they would be illegal. The employer would need to examine the factors contributing to the pay discrepancy and determine if there is an underlying issue of discrimination.

If an Employer Has a Merit Pay System in Place