Using compensation technology to improve comparable worth and equal pay
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The document discusses the use of compensation technology to improve equal pay and comparable worth practices, featuring a presentation by Bruce Johanson, an expert in HR and compensation. It outlines key components of pay equity regulations and best practices for establishing equitable compensation structures while addressing historical and legislative contexts influencing pay disparities. Additionally, it emphasizes the importance of job valuing and the integration of market data to ensure compliance and fairness in compensation across genders.
![No employer having employees subject to any
provisions of this section [section 206 of title 29 of the
United States Code] shall discriminate, within any
establishment in which such employees are employed,
between employees on the basis of sex by paying
wages to employees in such establishment at a rate
less than the rate at which he pays wages to
employees of the opposite sex in such establishment
for equal work on jobs, the performance of which
requires equal skill, effort, and responsibility, and
which are performed under similar working
conditions.](https://image.slidesharecdn.com/usingcompensationtechnologytoimprovecomparableworthandequalpay-171115193738/85/Using-compensation-technology-to-improve-comparable-worth-and-equal-pay-11-320.jpg)
![Thursday, August 04, 2016
Massachusetts: Leading the Way on Equal Pay
This was truly a historic week in Massachusetts. After
decades of work and coalition building, the state
legislature unanimously passed the strongest [...]
Monday, July 04, 2016
Equal Pay for Equal Work in Maryland
On average, women in America earn about 79 cents
for every dollar a man makes. In Maryland, women
make about 84.3 cents for every dollar a man makes,
[...]](https://image.slidesharecdn.com/usingcompensationtechnologytoimprovecomparableworthandequalpay-171115193738/85/Using-compensation-technology-to-improve-comparable-worth-and-equal-pay-20-320.jpg)
Using compensation technology to improve comparable worth and equal pay
- 1. Using Compensation Technology to Improve Comparable Worth and Equal Pay Guest Presenter: Bruce Johanson Johanson Group/DB Squared TalentTakeaways webinar & podcast series
- 2. AGENDAThe Series TalentTakeaways webinar & podcast series Talent Takeaways Series
- 3. AGENDAAGENDA ✓ Resource Library ✓ Product Information ✓ Product Tour & Demo The Sponsor Talent Takeaways Series Talent Management Made for Managers
- 4. AGENDAWebinar Info Talent Takeaways Series ✓ We are informal (and fun) ✓ Ask Questions! ✓ Q&A Session at end ✓ HRCI & SHRM Credits ✓ Slides will be available after
- 5. AGENDAPresenter Info Talent Takeaways Series Bruce Johanson is a Principal Partner and Co- Owner of two Fayetteville, AR-based companies, Johanson Group, a HR/Management consulting firm and DB Squared, LLC, a HR/Compensation software company. He has been with the Johanson Group since 1986 and DB Squared, LLC since its inception in 2005. Both companies are endorsed by the Arkansas Bankers Association and the Arkansas Municipal League. Bruce has worked with client organizations in more than thirty-five states. He is a regular presenter at state and regional HR conferences.
- 6. ❖ Key components and changes to pay equity and comparable worth laws ❖ How to create a step-by-step process to ensure compensation compliance ❖ Best practices for creating a defensible and equitable compensation plan structure ❖ How compensation technology can make compliance easier and more effective
- 7. Same Job Same Employer Means Equal Pay for Men and Women
- 8. • Equal Pay - 1960’s • Comparable Worth – 1980’s • Pay Equity – 2000’s • Comparable Pay – 2020’s
- 9. • Fair Labor Standards Act of 1938 (FLSA) Equal Pay Act of 1963 (Federal EPA) • Title VII of the Civil Rights Act of 1964 (EEO) • Comparable Worth Suits/Cases – 1980’s • Lilly Ledbetter Fair Pay Act of 2009 • Executive Order: “Closing the persistent pay gap for women and minorities” April 8, 2014 • California Fair Pay Act 2015 (SB 358)
- 10. Fair Labor Standards Act of 1938 (abbreviated as FLSA; also referred to as the Wages and Hours Bill is a federal statute of the United States. The FLSA introduced the forty-hour work week, established a national minimum wage, guaranteed "time-and-a-half" for overtime in certain jobs, and prohibited most employment of minors.
- 11. No employer having employees subject to any provisions of this section [section 206 of title 29 of the United States Code] shall discriminate, within any establishment in which such employees are employed, between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays wages to employees of the opposite sex in such establishment for equal work on jobs, the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions.
- 12. Title VII of the Civil Rights Act of 1964 protects individuals against employment discrimination on the bases of race and color, as well as national origin, sex, and religion. Title VII applies to employers with 15 or more employees, including state and local governments. It also applies to employment agencies and to labor organizations, as well as to the federal government
- 13. The overarching Comparable Worth idea/theory was that some jobs and occupations were being systematically devalued (discriminated against) based on the gender makeup of the occupation, and that the true value of the jobs' were being depressed by some sort of intrinsic gender bias in the marketplace.
- 14. Comparable Worth was also struck down by a Federal Appeals Court back in the mid 80s in AFSCME v. The State of Washington. The court ruled that Comparable Worth was not a Title VII theory, and that the plaintiff (AFSME) had to show job similarity, not just comparable worth, to have a potentially valid claim of gender- based pay discrimination. In addition, the court reasoned that since the State of Washington used market data in determining its wage rates, it therefore could not held liable for market-created disparities.
- 15. NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States of America, do hereby proclaim May 11, 2000, as National Equal Pay Day. I call upon government officials, law enforcement agencies, business leaders, educators, and the American people to recognize the full value of the skills and contributions of women in the labor force. I urge all employers to review their wage practices and ensure that all their employees are paid equitably for their work.
- 16. The Legislative Fix: The Lilly Ledbetter Fair Pay Act of 2009 Less than two years after the Ledbetter decision and during the first month of the 111th Congress, both the House and Senate passed the Lilly Ledbetter Fair Pay Act of 2009. And the Act as the first substantive piece of legislation signed by the President. The Act restores longstanding law and helps to ensure that individuals subjected to unlawful pay discrimination are able to effectively assert their rights under the federal anti-discrimination laws. Under the Act, each discriminatory paycheck (rather than simply the original decision to discriminate) resets the 180-day limit to file a claim.
- 17. On April 8, 2014, President Obama signed a memorandum and executive order designed to address race and gender-based disparities in compensation. The memorandum directs the Department of Labor (“DOL”) to propose a rule within 120 days requiring federal contractors and subcontractors to submit “summary data” on employee compensation by race and sex to the DOL using a “tool” to be developed by the agency.
- 18. Over 15 states have approved or tried to introduce legislation that further defines equal pay as being something more than just equal dollars between genders and protected groups.
- 19. • Now that the Equal Pay Act of 1963 is over 50 years old, why are there current efforts by several state legislative branches to further define equal pay and expected fairness pay outcomes? • To compound this complex issue, each employee/person assesses fairness individually based on personal values and prior circumstances.
- 20. Thursday, August 04, 2016 Massachusetts: Leading the Way on Equal Pay This was truly a historic week in Massachusetts. After decades of work and coalition building, the state legislature unanimously passed the strongest [...] Monday, July 04, 2016 Equal Pay for Equal Work in Maryland On average, women in America earn about 79 cents for every dollar a man makes. In Maryland, women make about 84.3 cents for every dollar a man makes, [...]
- 21. The state of California passed a new law called the “California 2015 Fair Pay Act”. This law extends to definition of equal pay to comparable pay and requires employers to extend “comparable pay” for jobs that are substantially similar. There is a legal expectation that men and women should be paid comparable pay for work performed of the same value to the organization.
- 22. On a scale of 1 to 5 (with 1 low and 5 high), how would you rate your organization’s comparable worth and equal pay practices?
- 23. 1. Create comprehensive and ADA compliant job descriptions. 2. Use an objective job valuing system that places an internal point value on each job. 3. With points and current employee pay, create a regression line to assess internal pay equity. 4. Obtain outside market data from 6 to 8 sources to determine where the organization is to market. 5. Establish salary ranges/grades by integrating the points, current employee pay and outside market pay. 6. Develop plan of action to address any pay inequities.
- 24. It all starts with the job description!
- 26. Next – Job Valuing or Internal Value Proposition!
- 27. This next level definition and interpretation for equal pay or “comparable pay” will require employers to re-evaluate their positions/jobs based on different criteria. Job valuing needs to be completed with a consistent job valuing factors system that can value all job classifications and provide a non-biased compensable factors process to determine which jobs are substantially similar based on proven factors and weighted points.
- 28. With all of the new laws and executive orders over the past eight years, the Wage Gap between women’s to men’s earnings has continued to close and will move closer and closer as more companies get serious about comparable worth policies. These policies include the evaluation of each position in the organization against a common set of objective and defensible job valuing factors. This kind of review takes out gender and other forms of potential biases to arrive at an overall point total score for the positions and not the individual in the position.
- 29. Will external market pay only studies stand-up to the scrutiny equal pay regulatory auditors and investigators?
- 30. Knowledge and Skill Requirements • General Experience • Management Experience • Education • Initiative and Ingenuity • Mental Demand • Analytical Ability/Problem Solving
- 31. Responsibilities • Responsibility for Work of Others - Supervision • Responsibility for Funds, Equipment and Property • Responsibility for Accuracy • Accountabilities for End Results
- 32. Communications and Efforts • Internal Communications • External Communications • Machine and Computer Operations • Working Conditions • Physical Demands
- 33. Do you use a job classification/job rating program to distinguish/value your jobs?
- 34. Next – External Value Proposition!
- 35. • Job Matching • Market pay comparisons • Validation of internal pay structure • Validation of position pay placement • Pay competitiveness
- 36. Sample Computer Services Company November 2016 (Gender Coded Dots) Scatter Graph of Actual Pay and Pay Policy
- 37. • DB Squared – DBCompensation – • HRsoft – Performance Management, Total Rewards, Variable Pay and Retirement Planning
- 38. AGENDAQ & A Talent Takeaways Series Live Q&A
- 39. AGENDAAGENDA Resources & Support Talent Takeaways Series ✓ Resource Library ✓ Product Information ✓ Product Tour & Demo HRsoft.com
- 40. Need Information: Bruce Johanson Johanson Group/DB Squared Fayetteville, Arkansas bruce.johanson@johansongroup.net (479) 521-2697