Concerns about pay inequality have intensified in recent years, with politicians, media and the public voicing strong opposition to employers paying women and other historically marginalized groups less for the same or substantially similar work. In addition to federal regulations, states and cities across the U.S., and Puerto Rico are increasingly adopting pay equity laws in an effort to close pay gaps. Outside the U.S., the concept of equal pay for work “of equal value” is a growing trend and many countries are adopting national gender pay reporting requirements. Compliance with intersecting equal pay laws can be daunting, placing a huge burden on corporate counsel and HR departments.
Getting this important issue wrong can have serious ramifications for employers. Class action lawsuits focused on fair pay are increasing, and negative publicity can hurt employee recruiting, retention and customer relationships. On the flip side, many employers are touting their record on pay equity to gain a strategic edge in their field.
What if employers could turn these legal and business challenges into a competitive advantage? Developed by the world’s largest labor and employment practice, the Littler Pay Equity Assessment™ measures compensation differences between demographic groups, identifies those that are statistically significant, and determines the extent to which these differences reflect legitimate business considerations. In a privileged context, Littler can assist employers with the steps crucial to defensible audit and proactively tackle this issue by combining our deep experience in employment law, compensation, and the application of data science, econometrics and statistics to the law, with proprietary technology. The result is an analysis that assesses litigation risk and points you toward solutions.
Experienced Employment Counsel: A Littler lawyer will work with you to understand the structure of your organization and its compensation system.
Your HR Data, Our Proprietary Approach: Based on that understanding, we will request segments of your HR and/or payroll databases that hold pertinent information, which we will input into our pay equity tool that allows data to be analyzed clearly, quickly and comprehensively.
Real Time Analysis: In real time, we will explore with you, via screen-sharing or in-person, how various features of your organization impact compensation. We will utilize filters embedded in the technology to apply various controls to model different views of your data.
User-Friendly Dashboard: The results of each analysis are displayed in a user-friendly dashboard, as shown above, so the analysis can easily be shared with and explained to company leaders. These displays eliminate the need for dense spreadsheets, mathematical formulas and technical reports, without sacrificing relevant information.
Documentation: The Littler Pay Equity Assessment documents your efforts to address pay differences. In certain jurisdictions, this may provide a defense to liability. For HR, this documentation can arm managers with the ability to respond when employees ask about their pay, potentially heading off disputes and costly litigation.
When it comes time for an insightful, strategic and practical assessment of your organization’s pay practices, you can now turn to the law firm that has been at the forefront of labor and employment law for over 75 years.
Our experienced attorneys can also assist with a broad range of state and federal issues related to pay equity, including:
To learn more, download the Littler Pay Equity Assessment flyer, also available in a Puerto Rico version (Evaluación de equidad salarial), which is tailored toward compliance with Act 16, the Puerto Rico Equal Pay Act. Questions about how we conduct a Littler Pay Equity Assessment from start to finish? Download the step-by-step process.