In 2021, Equal Employment Opportunity Commission (EEOC) Chair Charlotte Burrows issued a stern warning to businesses: Eliminating pay discrimination across gender and race would be "front and center" for the agency. But, given the existence of federal pay equity laws that have been on the books for almost sixty years, accompanied by the enduring refrain of "equal pay for equal work" without much meaningful progress, the concept of equal pay seemed more theoretical than realistic, leaving many to wonder whether serious progress was actually on the horizon.

As it turns out, although progress in pay equity reportedly slowed during the pandemic, pay equity efforts have exploded recently, particularly at the state level. Here's what businesses need to know.

States pick up the pace

Frustrated with the lack of progress at the federal level, most states have enacted their own pay equity laws. Some expanded the scope of jobs that can be considered when comparing pay (from "equal work" to work that is "substantially similar" or of "comparable character"). Other states like Maryland went further by prohibiting employers from "providing less favorable employment opportunities" based on gender or race while also narrowing the list of factors employers may consider when setting pay.