This can be part of an employer’s existing equal employment opportunity policy. Employers should not retaliate and should ensure that their managers and employees do not retaliate against employees for asserting rights under California or federal fair pay laws, as well as ensure that they have a reporting mechanism in place for complaints. Employers may consult with counsel or an experienced professional for guidance on conducting an appropriate pay audit. Review employee wages to identify any significant disparities in wages amongst employees who perform the same or substantially similar work and make compensation adjustments as necessary. This practice encourages pay equity and can be referenced if the employer’s compensation decisions are challenged. An employer should systematically document the factors relied upon to support difference in wage rates between employees (e.g., education, experience, etc.). An employer should retain such documents for no less than 4 years. An employer should document all compensation decisions and identify the basis for any adjustments. An employer should also educate its managers and supervisors who make compensation recommendations regarding the law and what factors they can and cannot utilize in their decision making. Suzanne Kvilhaug What Is the Lilly Ledbetter Fair Pay Act The Lilly Ledbetter Fair Pay Act of 2009 is a law enacted by Congress to bolster worker protections against pay discrimination. Although job titles, classifications, or descriptions are not determinative of whether two employees are performing substantially similar work, it is relevant and does provide some basis for comparison. Employers must now provide equal pay for employees who perform substantially similar work when viewed as a composite of skill, effort and responsibility. Employers should regularly review job descriptions to make sure that the description accurately reflects the overall job content, including the required skill, effort, and responsibility for that position. Ensure that you have access to reliable compensation information. How Many States Have Equal Pay Laws As of 2022, 42 states have enacted equal pay laws, acts or statutes however, it’s important to note that all 49 states and the District of Columbia fall under The Equal Pay Act of 1963, which prohibits pay discrimination on the basis of sex.In doing so, employers may seek counsel for guidance and assistance with compliance. Tips For Compliance With The California Fair Pay ActĪlthough not required, an employer can take several proactive steps to comply with California’s equal pay laws.
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