Localizing Compensation and Pay Equity Audits

Facebook recently announced that employees who expect to work from home for the long term will receive localized pay adjustments based on where they choose to live, according to reporting from USA Today. TechCrunch added these additional details from Facebook CEO Mark Zuckerberg: “We’ll localize everybody’s comp on January 1,” Zuckerberg said. “They can do…

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Equal Pay Audits Should Include Consideration of Equity-Based Pay

Too often, when business executives consider pay equity, they think about two factors: base compensation (e.g., salary) and rewards-based compensation (e.g., bonuses). A recent study entitled “The Road to Inequity is Paved with Good Intentions: Examining the Gender Pay Gap in Equity Awards” by Felice B. Klein, et al. (Academy of Management, Annual Meeting Proceedings),…

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Despite COVID-19, Pay Equity Continues to be a Priority

Undeniably, it is a very sensitive time for employers across the U.S. dealing with the economic implications ofCOVID-19.However, a recent order from the Central District Court of California serves as a reminder that employers should continue to focus their efforts on pay equity compliance. In May of 2019, Yunghui Chen, a former auditor for the…

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New Jersey State Agency Encourages Pay Equity Audits

Last month, the New Jersey Division on Civil Rights released its guidance on enforcement of the Diane B. Allen Equal Pay Act (the “Allen Act”). The Allen Act represents a high watermark for state equal pay legislation. It contains numerous provisions designed to promote pay equity, including expanded remedies for victims of pay discrimination, limiting…

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Pay Equity is Still a Top Concern for OFCCP Despite Pandemic

While U.S. companies continue to grapple with issues posed by the Covid-19 pandemic,pay equity issues should not be put on the backburner. On March 16, 2020, the United States Department of Labor announced the resolution of a pay equity claim brought by the Office of Federal Contract Compliance Programs (“OFCCP”) against Cisco Systems, Inc. The…

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Puerto Rico Leaps Ahead in Equal Pay Efforts

Puerto’s Rico’s equal pay efforts received a significant boost earlier this month, thanks to regulations set to take effect March 14, 2020. Puerto Rico’s Equal Pay Act, first enacted on March 8, 2017will now see new regulations to ensure employers are working to achieve gender equality. Under the new regulations, employers will be able to…

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Sterling Jewelers Faces Scrutiny in EEOC Lawsuit

Sterling Jewelers is facing consequences for potentially wrongfully handling a class action lawsuit regarding gender discrimination with the Equal Employment Opportunity Commission (EEOC). The case dates back to 2008 when a group of Sterling employees alleged that their employer discriminated against female employees on the basis of pay and promotion opportunities. By 2015, the class…

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Salary History Bans Will Lead to Pay Equity

Alabama, California, Colorado, Hawaii, Illinois, Maine, and Massachusetts are among the states that have enacted laws to prohibit or restrict employer salary history inquiries. These bans are meant to help close the gender pay gap by preventing employers from determining new salaries for new hires based on a job applicant’s previous earnings. They have also…

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