Internal Equity Law and Legal Definition
Internal equity is situation that results when people feel that performance fairly determines the pay for each individual with a certain job or that relative difficulty results in appropriate differences in pay rates between jobs. Worker dissatisfaction may arise when internal equity principles aren't met.
Internal equity studies analyze the nature of a particular position including:
1. Skill
2. Effort
3. Responsibility
4. Working Conditions.
The internal equity study determines if there is "pay equity" between like positions. This study ensures compliance with the Federal Equal Pay Act and state laws, thereby avoiding potential lawsuits. Additionally, an internal equity study makes good managerial sense in that employee morale, and consequently, productivity will increase.
Legal Definition list
Related Legal Terms
- Accumulation plan [Internal Revenue]
- Action in Equity
- Actuarial Present Value [Internal Revenue]
- All Substantial Rights to a Patent [Internal Revenue]
- Alternate Payee [Internal Revenue]
- Approved Terminal or Refinery [Internal Revenue]
- Architectural and Transportation Barrier Removal Expenses [Internal Revenue]
- Audits Internal
- Board of Trustees of the Internal Improvements Trust Fund
- Brand Equity
