PAY EQUITY LAWS AND REGULATIONS UPDATE

Transcription

1 PAY EQUITY LAWS AND REGULATIONS UPDATE Presented by: Lara C. de Leon, San Antonio, Texas. ogletreedeakins.com

2 Agenda (Brief) Historical perspective Legal developments Recent trends that may affect employers Best practices to prevent and defend against potential claims

3 Why the Fuss?

4 Historical Perspective Federal laws Equal Pay Act Title VII Last significant development Lily Ledbetter Act (2009)

5 States are Getting into the Game Several states/cities have enacted new legislation Other states considering pay equity legislation including Texas Texas HB 290 would: Prohibit asking an applicant s wage history until after a job offer with has been extended Provide an EPA-like claim

6 State Developments Key Points State laws create potential for differing standards for determining pay equity Protected classes race/ethnicity; gender identity What is substantially similar work Continued applicability of same establishment Employees may discuss pay Prohibitions or restrictions on asking about prior pay or salary history

7 Pay Transparency and Reporting

8 New EEO-1 Report (2018)

9 EEOC s New Revisions to EEO-1 Report New Components Summary Pay Data using the income provided in Box 1 of employees W-2 forms Aggregate Hours Worked First report due March 2018 Continued questions, issues regarding use and confidentiality of data. Form, FAQs, Fact Sheet posted on

10 Trends

11 Increased Risks for Employers Private litigation Individual claims of pay discrimination harder to defend Potential class actions Internal complaints Increased awareness due to equal pay discussions in media and social media EEOC/OFCCP Reporting burdens Investigations Cause findings Litigation

12 Best Practices for Prevention and Protection

13 Take Action Prevention and Protection Take action now before the government/litigants Review and analyze policies, procedures, and processes Clean-up data HRIS system Audit data to identify pay disparities and weaknesses

14 Purposes of a Pay Audit Identify potential pay disparities within appropriate job classifications Determine whether there are legitimate explanations for disparities Take steps to correct the disparities

15 Pay Audit Considerations Conduct audit under privilege Before starting understand pay decisions within the company What types of pay decisions are there starting pay, merit increases, adjustments, other compensation Who makes the decisions What factors are relied on to make pay decisions

16 Pay Audit Considerations Have the data analyzed by an expert Statistically significant differences Outliers Determine if factors explain disparities Correct disparities that cannot be explained with legitimate reasons Timing of corrections Communication regarding corrections

17 Policy and Procedure Review Review written policies, procedures, practices Decision-makers scope of authority Factors are considered related to job, objective, quantifiable How are decisions documented Identify weaknesses in the systems that may lead to disparities Modifications to improve policies and procedures

18 Practical Tips Written policies for pay increases and bonuses Guidelines based on objective, quantifiable factors Limit subjectivity with objective factors Document pay decisions Assess job descriptions Assess performance evaluation process Train decision-makers Conduct periodic pay analyses

19 QUESTIONS?

20 Brenham/Washington County Chamber Small Business Forum PAY EQUITY LAWS AND REGULATIONS UPDATE Presented by: Lara C. de Leon San Antonio, Texas