Equal pay and Title VII reach benefits, and religious accommodation has a higher bar since 2023.
Federal anti-discrimination law treats benefits as part of compensation. This page covers the Equal Pay Act, Title VII, the Pregnancy Discrimination Act and religious accommodation, with attention to how plan and policy design can raise issues.
The Equal Pay Act.
The Act bars sex-based pay differences for equal work.
The Rule
An employer may not pay different wages by sex for jobs requiring equal skill, effort and responsibility, performed under similar conditions in the same establishment.
Exceptions
Differences can rest on a seniority system, a merit system, quantity or quality of production, or any factor other than sex.
Benefits Are Wages
Under the EEOC’s rules, fringe benefits count as wages, so unequal benefits for equal work can be an issue.
Title VII and benefit parity.
Title VII covers employers with 15 or more employees, and Michigan’s Elliott-Larsen Civil Rights Act reaches smaller ones.
Compensation Includes Benefits
Title VII bars discrimination in compensation, terms, conditions and privileges of employment, which includes health, disability and leave benefits.
Contributions
Employees cannot be charged different contributions because of sex. The Supreme Court addressed this in City of Los Angeles v. Manhart (1978).
Pregnancy
The Pregnancy Discrimination Act requires that pregnancy-related conditions be treated like other conditions for benefit purposes.
Religious accommodation.
Employers must accommodate sincerely held religious beliefs and practices unless it causes undue hardship.
Higher Bar
In Groff v. DeJoy (2023), the Supreme Court held that undue hardship means a burden that is substantial in the overall context of the business. A small cost is not enough.
Benefit Examples
Requests can involve schedules around observances, wellness program requirements, and objections to particular coverage. Each is reviewed on its facts.
Not for Benefits Alone
Denying a benefit because of an employee’s religion is discrimination, even where no accommodation is requested.
Designing for parity.
A few habits reduce risk.
Review Eligibility
Check that eligibility, contributions and waiting periods are the same across comparable groups.
Document Requests
Keep a record of accommodation requests, the discussion and the outcome.
Wellness and Surcharges
Incentive and surcharge designs can raise disability and religion questions. See the wellness guides.
Questions Employers Ask About Equal Pay and Title VII
Does the Equal Pay Act cover benefits?
Yes. The EEOC’s rules treat fringe benefits as part of wages.
Can a small employer be covered?
Title VII starts at 15 employees. Michigan law reaches employers with fewer.
What is undue hardship for religion now?
A burden that is substantial in the context of the business, following Groff v. DeJoy.
Is this legal advice?
No. It is general information. Bring your counsel into specific cases.
Related guides.
PWFA and PUMP Act
Pregnancy and lactation accommodations.
Contraceptive Coverage Exemptions
Religious and moral exemptions.
ADA and GINA Wellness Rules
Program design.
Reviewing benefits for parity?
We can compare eligibility, contributions and policies across your groups and flag questions for your counsel. This page is general information, not legal advice.
Your plan type
Employee count
The policy or situation
Your state
Rough answers are fine. We build the numbers from there.
Laws and rules referenced
29 U.S.C. § 206(d) — Equal Pay Act.
42 U.S.C. § 2000e-2 — Unlawful employment practices under Title VII.
42 U.S.C. § 2000e — Definitions, including religion and the Pregnancy Discrimination Act.
EEOC: Religious Discrimination — Guidance, with the 2023 Groff update.
Groff v. DeJoy, 600 U.S. 447 (2023) — Undue hardship standard.
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