This fact sheet addresses pay equity, that is, the goal of a fair wage-setting process that eliminates sex and race discrimination. It begins by setting forth the problem through statistics on men's and women's median annual earnings, the occupational categories represented by women workers, and median annual earnings by occupation. A glossary is also provided. Obstacles to pay equity are then identified and answers suggested. These obstacles are considered: high cost, cultural bias, theory of the market, occupational segregation, fear of lowered male wages, and theory of apples and oranges. These remedies are recommended: collective bargaining, legislation, voluntary initiatives, and litigation. Examples of each are provided. Three national laws to protect working women's wages are cited. Finally, a national outlook is presented. Proposed federal legislation and pay equity activities at the state level are briefly outlined. (YLB)