Navigating Pay Equity: Knowing & Abiding by Laws

Posted on: July 3, 2017 by Huntersure

Establishing Pay Equity > Knowing the Law

In our last article, we went into depth about how employers can understand the laws of pay equity, make objective decisions for raises and bonuses, and how to implement a fair, written anti-discrimination policy. In this installment, we’re going to cover how to abide by these laws to prevent the business from coming under fire and facing legal trouble. As this uncertain legal future continues, ensure your clients are protected with a comprehensive Lawyer Professional Liability Insurance program.

In addition to understanding the laws that apply to your client’s firms, here is some additional information to share with them about how to abide by them.

Analyze pay practices.

Employers should refrain from using their employee’s prior compensation as a gauge for how much they’ll be paid in their current position. As women have been shown to earn 70 cents for every dollar a man makes, this is not a wise practice, and the firm could inadvertently be participating in pay discrimination. Evaluate the pay scale between positions that are typically male-dominated versus positions that are historically female-dominated to ensure equality.

Conduct statistical analysis.

According to ACC:

• Conduct a statistical and cohort comparison analysis of your workforce to identify and eliminate existing gender pay inequities across establishments and positions that perform similar work.
• Identify positions with disparities, focusing on jobs with similar work that have a standard deviation of two or more.
• Study the differences to identify potential defenses and remedial measures. All analyses should be protected by attorney-client privilege and the work product doctrine to avoid creating evidence that could be used by the EEOC, OFCCP or a private plaintiff.

About Huntersure

Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We aim to provide exceptional, creative, and personalized insurance solutions to all members of the business world. Whether you need Lawyers Professional Liability Insurance or any other professional coverage, give us a call at (646) 751-3030 to learn more about the professional liability products and protection we offer.

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