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What Employers Need to Know Today about Equal Pay

What Employers Need to Know Today about Equal Pay

EqualPayforEqualWorkThe subject of equal pay is a hot topic right now. With an election year in full swing, some candidates like Hillary Clinton are using the important topic to gain support for the presidential race. Even the U.S. Women’s Soccer Team are in a heated legal battle with the U.S. Soccer Federation over the problem of fair wages. It’s been an issue for a long time and frankly, shouldn’t.

As many employers already know, and according to EEOC, (U.S. Equal Employment Opportunity Commission), “the right of employees to be free from discrimination in their compensation is protected under several federal laws, including the following enforced by the U.S. Equal Employment Opportunity Commission: the Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, and Title I of the Americans with Disabilities Act of 1990.” To review more about the EEOC and Facts About Equal Pay and Compensation Discrimination visit here.

With so many laws already supporting this vital cause, it’s astonishing how the gender gap in pay is still happening. The White House created a special Your Right to Equal Pay section of their website, featuring segments such as “Understanding the Basics, Know Your Rights, Get the Resources and Take Action.” To understand the pay disparity, the White House states “Despite passage of the Equal Pay Act of 1963, which requires that men and women in the same work place be given equal pay for equal work, the “gender gap” in pay persists. In 2014, the typical woman working full-time all year in the United States earned only 79 percent of what the typical man earned working full-time all year. Phrased differently, she earned 79 cents for every dollar that he earned. The pay gap is even greater for African-American and Latina women, with African-American women earning 64 cents and Latina women earning 56 cents for every dollar earned by a white non-Hispanic man.”

Right now the Obama administration along with other politicians such as Hillary Clinton support the “Paycheck Fairness Act, a comprehensive and commonsense bill that updates and strengthens the Equal Pay Act of 1963, which made it illegal for employers to pay unequal wages to men and women who perform substantially equal work.”

Still doubting that it’s having an impact on your business? Since the 2014 gender gap findings, other sources have published recent reports confirming “Based on more than 505,000 salaries shared by full-time U.S. employees on Glassdoor, men earn 24.1 percent higher base pay than women on average.”

This April we celebrate National Equal Pay Day and we thought it be helpful to highlight some tips of what employers can do to make sure there are compliant with the federal laws.  Take a look at these suggestions a legal firm recommended:

– Conduct a recruitment self-audit.
– Evaluate your compensation system for internal equity.
– Evaluate your compensation system for industry competitiveness.
– Conduct a new job evaluation system if needed.
– Examine your compensation system and compare job grades or scores.
– Review data for personnel entering your company.
– Assess opportunities for employees to secure commissions and bonuses.
– Assess how raises are awarded.
– Evaluate employee training, development and promotion opportunities.
– Implement changes where needed and maintain equity.

Equal pay will continue to be a hot battle in the coming years. In order to companies to protect themselves and to become compliant, they must start with the self-audit. If this is something your business struggles with, you may want to seek a legal professional to understand more about your rights.

What about you? Do you notice the pay gap in your industry? What are some tips you recommend to help other companies be compliant?

Ingrid Moore

Ingrid Moore is the Founder and CEO of Corporate Resources of Illinois, an employment & staffing agency with over 20+years’ experience located in Schaumburg, IL. Ingrid and her team assist employers with finding the right hire for their business. For more info, follow us on our LinkedIn Company Page, or follow us Corporate Resources of Illinois‘s Google+ page.

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