Under EEOC guidelines, pay differentials between male and female employees are permissible if based on a legitimate factor such as seniority.

• A. Gender
• B. Seniority
• C. Age
• D. Race

Answer: (B)

Under EEOC guidelines, pay differences are allowed when they rest on legitimate factors other than sex that relate to the job. Seniority is a classic example because it reflects how long someone has worked for the company and can justify higher pay for more experience or longer service. The important point is that the factor must be legitimate and applied fairly, not used to mask discrimination.

Choosing pay based on gender, age, or race would involve protected characteristics and is not permissible; those factors are off-limits for determining wages.