Top Excuses Employers Use to Justify Unequal Pay

If you’ve ever discovered that a coworker with the same job title makes more money than you, you’ve probably heard one of the usual excuses. “They’ve been here longer.” “They have a different background.” “It’s just how the salary bands work.” Employers often throw out reasons that sound legitimate… at least on the surface.

But when those reasons consistently work against women, people of color, or others in protected categories, it raises serious legal questions. In New Jersey, the law is on your side when it comes to fair pay — and not all employer justifications hold up under scrutiny.

Let’s break down the most common excuses companies use to explain unequal pay, what New Jersey law says about them, and what you can do if you suspect pay discrimination is happening.

“They Have More Experience”

This is a classic explanation. Sometimes, it’s valid: experience can legitimately justify a higher salary. But employers must prove that experience is truly related to the work being performed and that it’s used consistently and fairly across employees.

In other words, if your coworker has five years of experience in a completely unrelated field, that shouldn’t justify higher pay for the same job.

“They Negotiated Better”

Ah, the negotiation defense. It’s true that some employees negotiate harder or are offered more because of what they were earning at a previous job. But under New Jersey’s Equal Pay Act, relying on prior salary history as a justification for lower pay is not allowed.

If you’re being paid less solely because you didn’t negotiate or because you didn’t feel empowered to do so — that could raise red flags under the law. Employers must base pay on objective, job-related criteria.

“They Work Harder”

Unless there’s documentation and performance metrics to support this claim, it’s a weak defense. An employer might argue that one person is more productive or brings in more clients — but that argument only works if it’s based on quantifiable, provable differences, not vague impressions.

The law requires that employers apply their standards equally. If performance really is the reason for a pay gap, it needs to be clearly documented and measurable.

“That’s Just What We Offered Them”

Some companies defend pay differences by saying they offered each person what they thought was appropriate at the time. But “gut feeling” pay offers, even when well-intentioned, don’t justify unequal compensation for the same or substantially similar work.

In New Jersey, employees who do substantially similar work, even if their titles or locations differ, should receive equal pay unless the employer can show a legitimate reason otherwise. The burden is on the employer to explain pay differences using valid, job-related factors.

“They Have a Different Title”

Employers may try to justify unequal pay by pointing to different job titles, even when the actual duties are nearly identical. But job titles alone don’t cut it. What matters under New Jersey law is whether the work being performed is substantially similar in terms of skill, effort, and responsibility.

So if you and a colleague perform basically the same tasks but your titles differ slightly, you could still be entitled to equal pay under the law.

“We Pay Market Rate”

Some employers defend low pay by saying it’s the going rate for the market or industry. But what if the market itself is discriminatory? Basing wages on what others are (under)paying isn’t a valid defense under the Diane B. Allen Equal Pay Act if it continues to disadvantage certain groups.

New Jersey law demands more than just blind adherence to “industry norms.” Employers must ensure their pay practices are equitable, even if that means going against the status quo.

Unequal Pay by the Numbers

Back in 2018, the gender pay gap in New Jersey was still a major concern — women were earning about 81 cents for every dollar men made in the same jobs. And when you factored in race, the gap widened even more. Black women earned just 80 cents for every dollar paid to white women, and only about 65 cents compared to white men. For Latina women, the numbers were even lower — they made just 76% of what white women earned, and 62% of what white men took home.

This is exactly why New Jersey passed the Diane B. Allen Equal Pay Act in 2018, one of the strongest equal pay laws in the country. It places the burden on employers to prove that any pay gap is based on valid, business-related reasons, not vague justifications.

What the Diane B. Allen Equal Pay Act Says

New Jersey isn’t shy when it comes to protecting employees’ rights to equal pay. The Diane B. Allen Equal Pay Act, which expanded the state’s Law Against Discrimination (LAD), is among the strongest in the nation. Here’s what it does:

• Mandates equal pay for substantially similar work regardless of job title.
• Extends protection to all protected classes, not just gender.
• Prohibits retaliation against employees who ask about, disclose, or discuss wages.
• Increases penalties for violations — including back pay, fines, and more.

So if you're being paid less and the reason doesn’t add up or sounds suspiciously like one of the excuses above — you may have a case.

If you think you’re being paid unfairly, you’re legally protected when asking questions, comparing pay with coworkers, or filing a complaint.

What You Can Do If You Suspect Unequal Pay

If you think you're being underpaid, take these steps:

1. Document your pay and duties. Keep records of your job responsibilities, pay stubs, and any communications related to compensation.
2. Compare roles. Look at co-workers in similar positions. Are their duties and responsibilities comparable to yours?
3. Talk to HR (if safe to do so). Sometimes the issue can be addressed internally — especially if it’s a genuine oversight.
4. Reach out to a lawyer. This can be your most powerful move. An equal pay act lawyer in New Jersey can assess your case and help you understand if your employer has violated New Jersey law.

Don’t Let Excuses Cloud the Facts

Employers may rely on common explanations to defend unfair pay, but that doesn’t mean those reasons are valid under the law. If you’re being paid less for doing the same work, it’s worth asking why and pushing for real answers.

Many so-called wage gap justifications in NJ — like experience, negotiation skills, or job titles — can still be forms of discrimination if they consistently disadvantage workers in protected groups. New Jersey’s Equal Pay Act is designed to cut through those justifications and hold employers accountable when the pay gap isn’t based on fair, business-related reasons.

Talk to Someone Who Understands

Worried you’re being underpaid without a legitimate reason? Don’t let surface-level excuses or vague corporate jargon mask what could be a violation of your rights. A qualified equal pay act attorney in New Jersey can help you sort through the facts, understand your options, and fight for the compensation you deserve. 

Reach out today for a confidential consultation. Equal pay isn’t an ideal — it’s the law.