What Is Pay Equity?
Pay equity refers to the principle that all employees should be paid fairly and equitably based on the requirements of their position and their individual skills and experience. MIT works to achieve pay equity through a collaborative process led by the Compensation Office that includes engagement with DLCI human resources staff as well as outside vendors, and by staying up to date with federal, state, and local laws.
What Is the Role of the Compensation Office?
MIT's Compensation Office is responsible for:
- Administering Institute compensation programs and ensuring that these programs are appropriate, competitive, and efficiently managed. For example, Compensation administers the Annual Salary Review (ASR) process for all employee categories (excluding service staff).
- Staying informed of salary trends in the external market to ensure competitive pay.
- Managing the job descriptions and pay structure for support staff, administrative, and sponsored research administrative staff to ensure consistency with job classifications and pay decisions across the Institute.
- Working closely with Department, Lab, Center, and Institute (DLCI) HR administrators on various salary offers and pay decisions for many staff categories such as support, administrative, and sponsored research administrative staff. Pay equity is reviewed by the Compensation Office staff and/or DLCI HR staff each time there is a pay decision. DLCIs typically manage pay decisions for faculty, other academic staff, and sponsored research technical staff.
A Collaborative Approach
An employee’s manager, DLCI HR, and the Compensation Office work together on compensation-related matters such as promotions, increased responsibility, and pay equity review.
- Responsible for updating an employee’s position description, highlighting changes in an employee’s responsibilities. Reviews changes in an employee’s role with their DLCI HR partner to request a job evaluation.
- Completes performance reviews to support the Annual Salary Review (ASR) process for their employees.
- Collaborates with their DLCI HR partner when they are concerned about a pay equity issue for an employee.
- Provides justifications to their DLCI HR partner in support of a compensation review for an employee. Note: Employees with concerns about their own pay should start the process with their manager to request a pay equity review.
- Works with their DLCI HR partner to determine starting salaries for new hires and salaries for internal promotions.
The DLCI HR or local HR designee:
- Serves as a resource for employees and managers on compensation requests. Partners with the Compensation Office to review requests.
- Works with managers to review and/or develop position descriptions. Ensures position descriptions are up to date.
- Manages internal pay equity within their DLCI. Partners with the Compensation Office on Institute-wide pay equity reviews.
- Follows and applies compensation policies and guidelines set by the Compensation Office.
- Partners and advises DLCI HR partners on various compensation requests.
- Reviews compensation requests; ensures requests set forth are supported by business needs.
- Confirms DLCI has funding to support compensation requests put forward.
- Liaises with Provost's Office or VPHR Office on cases that require additional approval.
What Steps Does MIT Take to Achieve Pay Equity?
- Pay equity is reviewed by Compensation Office and/or DLCI HR staff to ensure internal equity each time there is a pay decision about an individual employee, including at the time of hire, promotion, or change in position. The goals of pay equity are to:
- Ensure that employees are paid according to their responsibilities and experience;
- Compensate employees fairly and equitably based on their contributions to the organization rather than on factors that are not job-related, such as gender, race, age, or other characteristics; and
- Compare an employee's pay with the pay of others in comparable jobs in their DLCI and/or across MIT.
- On an annual basis, with each Annual Salary Review process, the Compensation Office provides instructions to DLCI HR staff, specifying that particular attention be given to ensuring that the salaries of all staff are commensurate with their responsibilities, qualifications, and levels of performance, and that these salaries are equitably related to the salaries of staff in other comparable positions. See MIT’s Policy 7.2.5 — Salary Equity Review Process. Pay equity analyses are encouraged and occur regularly at the local level in consultation with the Compensation Office.
- Human Resources works with the Office of the General Counsel to conduct Institute-wide compensation analyses in compliance with legal requirements.
- Human Resources and the Office of the General Counsel stay abreast of federal, state, and local pay equity laws.
Pay Equity Laws
- The Equal Pay Act of 1963: one of the first laws about pay equity, it requires employers to pay men and women equally for equal work.
- Title VII of the Civil Rights Act of 1964: a landmark legislation prohibiting discrimination, including pay discrimination, against employees based on race, color, religion, sex or national origin.
- The Lilly Ledbetter Fair Pay Act of 2009: enhances protections against pay discrimination, ensuring fair compensation regardless of gender, race, age, religion, or disability. The Act empowers employees to challenge unfair pay practices and seek justice for ongoing discrimination.
- The Massachusetts Equal Pay Act (MEPA): requires that employees receive equal pay for comparable work, regardless of their gender. It should be noted that pay can vary based upon certain criteria such as acquired experience and skills related to the position, and an individual's performance. HR has guidance on pay transparency, pay history, comparable work, and other aspects of the Act.
- Starting October 29, 2025, the Massachusetts Pay Transparency Law will require employers with 25 or more employees to disclose wage ranges in job postings, to applicants, and current employees upon request.
Have Questions or Need Help?
Your local HR administrators or your HRO can assist with pay equity questions or concerns.