For Employers: Reviewing Your Pay Practices

Be an Active Listener

» Listen to what your employees are saying about their equal opportunity within the company.

» Statements from the Women’s Bureau Department of Labor that can be warnings telling you to review your pay practices.

“It is not our fault if they are bad negotiators for their own salaries.”
“We should be able to pay our workers what we want to pay them.”
“We can’t talk about pay at work.”
“I assume everything is fair because no one is complaining.”
“I’m not sure who checks our compensation system for equality, but I know it’s not me.”
“I’m not exactly sure what was used to decide this salary.”

Increase Pay Transparency

» An open pay policy allows employees to know how much their co-workers are earning. As an employer, this would help end speculations about equal pay and identify any future pay discrepancies that need to be changed.

Equal Pay and Pay Transparency Protections by State

 

Monitor Your Pay Practices  

Steps:

» Appoint specific individuals to be responsible for thoroughly examining your company’s  pay practices in order to make sure federal, state, and local anti-discrimination laws are being upheld.

» Evaluate all forms of your compensation system annually for any potential wage gaps based on race, ethnicity, and gender.

This includes looking at starting salary, benefits, bonuses, training opportunities, etc.

It’s a good idea to conduct periodic spot checks throughout the year as well.  

» Take action and correct any compensation problems as soon as they are detected.

»  Hold frequent equal employment opportunity training sessions on compensation to help gain awareness.

»  Ask yourself these questions when hiring new employees:

How are women and minorities placed in your company? Do you make assumptions about what they can or cannot do?
Does your hiring process seek diversity among qualified applicants?
Do you offer career training or opportunities for both genders?
»  When negotiating starting salaries and signing bonuses, make sure that the process does not have a negative impact on women or minorities.
»  Review your company’s performance evaluation process to make sure the process and ratings given to each employee do not unfairly disadvantage women or any protected class.


Resources to Use

» U.S. Department of Labor

Phone: 1-866-4-USA-DOL (TTY: 1-877-889-5627)

Web site: www.dol.gov

» Women’s Bureau

Phone: 1-800-827-5335

Web site: www.dol.gov/wb

» Office of Federal Contract Compliance Programs

Phone: 1-800-397-6251 (TTY: 1-877-889-5627)

Web site: www.dol.gov/ofccp

» U.S. Equal Employment Opportunity Commission

Phone: 1-800-669-4000 (TTY: 1-800-669-6820)

Web site: www.eeoc.gov

» National Labor Relations Board

Phone: 1-866-667-6572 (TTY: 1-866-315-6572)

Web site: www.nlrb.gov



Other Sources:

10 Step Guide for Employer Pay Equity Self-Audit  

EEOC: Best Practices for Employers

How To Prevent Wage Discrimination

 













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