outsolve insights

Setting salaries can feel like a guessing game. If you pay employees too little, they leave for better offers. If you pay too much, you strain your budget and create pay compression. That’s where compensation benchmarking comes in. 

If recent federal changes have you questioning pay equity’s importance, consider this: states are stepping up enforcement, and your employees are watching. In 2025, staying proactive is key. 

Not only that, but under the federal Equal Pay Act of 1963 and Title VII of the Civil Rights Act,employers are prohibited from pay discrimination on the basis of sex, gender, race, or ethnicity. These two laws work together and require that any pay differences are justified by legitimate, non-discriminatory factors such as merit, seniority, quantity or quality of work, or a factor other than sex and race.