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The More You Know: Pay Equity

By Net Assets posted 07-02-2018 09:53 AM

  
pay equity

Risk Management |

Aggressive pay-equity laws are on the rise.

From the July/August 2018 Net Assets magazine

The following is an excerpt of the article "The More You Know," which covers nine additional topics (see box below). 

    This information is provided for general educational purposes only. It should not be relied upon as, or in place of, legal advice. The authors and reader do not have an attorney/client relationship. Readers are encouraged to work with their legal counsel when addressing specific issues.

    By Grace H. Lee, NBOA

    The Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 provide federal protection against pay disparities based on gender and other protected categories. Nevertheless, the latest pay gap statistics show that for every $1 paid to men, women are paid 80 cents, according to an analysis by the Center for American Progress. Compared to white men, African-American women are paid 63 cents, and Hispanic women are paid 54 cents per dollar.

    To combat the persistent pay gap, a growing number of state and local governments are passing aggressive pay-equity laws. Many of these laws include a provision banning salary history inquiries during the hiring process because such inquiries only perpetuate the pay gap from employer to employer. In addition, the U.S. Court of Appeals for the Ninth Circuit has specifically ruled that salary history does not justify salary gaps.  Riding the growing momentum of changes in laws, there is increased interest in pay transparency among employees, shareholders, civil rights groups and activists.

    One emerging best practice is to ask for salary expectations instead of salary history during the interview and hiring process — even if your state or local law does not ban salary history information.  Schools should be prepared to justify pay structures and salaries based on legitimate factors such as experience, seniority, education and other job-related merits. Schools are also encouraged to take proactive measures and conduct an analysis by examining payroll data for evidence of pay gaps based on gender, race or other protected categories. If any disparities emerge, determine if you have legitimate business reasons for them.

    Grace H. Leebased in Washington, D.C., is NBOA’s vice president, legal affairs.

    Download a PDF of this article.

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