Pay Equity Reaching Compliance and Ongoing Administration Presented - - PowerPoint PPT Presentation
Pay Equity Reaching Compliance and Ongoing Administration Presented by: Laurie L. Grenya, SPHR Co-President Toda odays Agen Agenda Hist History ry of Pay Equ of Pay Equity Oregons 2 ons 2017 and 2 2019 legislati islation
Pay Equity Reaching Compliance and Ongoing Administration
Presented by: Laurie L. Grenya, SPHR Co-President
Toda
Agenda
History ry of Pay Equ
2019 legislati islation
inistrativ trative R e Rules es
Steps to Comp to Compliance ce
ministration C tration Consider siderati ations
tions
His istory of
Pay Equi Equity
The Fede Federal Equa Equal Pay Act Pay Act was was passe passed in 1 in 1963 as as an an amen amendment to to the Fair Labo the Fair Labor Stan Standard rds Act of Act of 1938
Mand ndated d that hat men n or women n recei eive e equa qual pay when hen working g jobs bs that at requ quire “equ qual l skill, effort, and nd respon
bility, and nd whi hich are e per erformed ed unde nder similar working g condi
ns” Provided al allowance for
pay di differences on
he bas basis of
erit, sen eniority, wor worker’s qual uality or quant uantity of prod
uction
nd other her factors not det etermine ned d by gend ender”
Educational Amen Amendment of
expanded the reach the reach of
the Equal Pay Pay Act to incl Act to include whit white-collar e collar executi tive, e, p professional a essional and a administr inistrati ative e jobs jobs
His istory of
Pay Equi Equity - cont ntinued inued
Oregon Passe Passed it’ it’s own equa
pay leg legislation in in the earl the early 80’s. ’s.
Mand ndated d that hat “No
ployer er shal hall in any manne anner discrimina nate bet etwe ween n the e sexes in the he pay aymen ent of wage ages for wor
parabl ble char aracter, the he perfor
e of which h requi uires es compa parabl able skills.” Mand ndated d that hat “No
ployer er shal hall pay ay wages ages to any empl ployee ee at a rate less than han that hat at whi hich the he empl ploy
ays wages ages to empl ploy
he oppos pposite sex for work
parabl ble char aracter, the he perfor
e of which h requi equires compa parab able e skills.”
Oregon’s gon’s 2 2017 a and 2 2019 Legis islat lation ion
House B Bill 2005 2005 (2017) 2017)
Employe yers are s are proh prohibited from from seeki seeking the the pay histo pay history of y of an an appl applica cant or
employee ( loyee (Effectiv ective O e October ber 6, 2017)
Employe yers may s may not, not, in any in any mann manner, r, discr discriminate betw between empl employees on s on the basi the basis of s of an an emp employe yee’s statu s status as s as a a memb member of
a prot protect cted class class in in the payme the payment of
wages or s or othe
compensa sation for work for work of
arable charac acter; ter; d defined fined as Knowledge, wledge, S Skill, ll, E Effort,
ponsibi ibili lity ty a and Working C king Condi ditions tions (Eff (Effect ctive ve Janua January 1 y 1, 2019)
Oregon’s gon’s 2 2017 a and 2 2019 Legis islat lation ion - cont ntinued inued
House B Bill 2005 2005 (2017) 2017) - continued tinued
vides a allow lowance f ance for differenc ferences es in c compens ensati ation f
following llowing reaso reasons onl s only; (Eff y; (Effect ctive ve Janua January 1 y 1, 2019)
A seniority system; A merit system; A system that measures earnings by quantity or quality of production, including piece-rate work; Workplace locations; Travel, if travel is necessary and regular for the employee; Education; Training; Experience; or Any combination of these factors, if the combination of factors accounts for the entire compensation differential. ORS 652.220(2).
Oregon’s gon’s 2 2017 a and 2 2019 Legis islat lation ion - cont ntinued inued
Senate B Bill 123 123 (2019) 2019)
Provides except s exception to to comp compara rable chara charact cter for accomm for accommodation made made thro through the ADA the ADAAA.
Provides except s exception to to comp compara rable chara charact cter for lig for light duty duty offe
red as as the the resul result of
restrict ctions rela s related to to a a Worke Workers Comp s Compensa sation clai claims. s.
Direct cts the court the courts to s to requ require the eli the elimination of
wage diff difference ces and and the the payme payment of
lost wages wages rath rather than than lea leavi ving thi this a s a discre discretionary ry choic choice.
Clarifies that s that if if lang language in in a a CBA ali CBA aligns with s with one of
the eig eight facto factors of s of allowable p lowable pay differenc ference t e the l language i guage is allow lowabl able. e.
Oregon’s gon’s A Adminis nistrat rativ ive R e Rules es
Performing Work of Comparable Character at Different Compensation Levels
Rules supporting the 2019 legislation have not been written yet.
Oregon’s gon’s A Adminis nistrat rativ ive R e Rules es - cont ntinued inued
Seek Seeking and Scree and Screening Job Job App Applicants Based s Based on
Compensa sation
Salary ry hist history y canno cannot be asked be asked of the
applica cant
Applica cations canno s cannot be be screen screened by by wage wage hist history ry
Salary ry hist history canno y cannot be be sough sought with without havi having made made a a cont contingent offe
r with with a a tota total compe compensation packa package
You may ask ask abou about an an app applica cants desir desired wage wage for the job for the job
If history ry is share is shared or
received, be clea be clear wit with the the app applica cant that that the the info information wil will not be not be used in used in the deci the decisi sion maki making proce processe
Then, docum document for the for the fil file
Oregon’s gon’s A Adminis nistrat rativ ive R e Rules es - cont ntinued inued
Work Work of Comp
rable Char Charact cter
wledge – not def not defined
Skill – not defi not defined
not defined
ity – not def not defined
king Condi ditions tions – “Inc “Includes work envir s work environment, hours, hours, time time of
day, physi physical surrou surroundings and pote s and potential haza hazard rds enco encountere red by by an an employee. loyee.”
Oregon’s gon’s A Adminis nistrat rativ ive R e Rules es - cont ntinued inued
Exceptions t ptions to Comparable P parable Pay – MUST MUST BE BE RELA RELATED TO TO THE JOB THE JOB A seniority system (wit (within the the
anizati ation)
A merit system; A system that measures earnings by quantity or quality of production, including piece-rate work; Workplace locations; Travel, if travel is necessary and regular for the employee; Education (rela (related to to the job) the job); Training (rela (related to to the job) the job); Experience (rela (related to to the job) the job); or Any combination of these factors, if the combination of factors accounts for the entire compensation differential. ORS 652.220(2).
Oregon’s gon’s A Adminis nistrat rativ ive R e Rules es - cont ntinued inued
Dete Determ rmining Bene Benefits as s as Part Part of
Compensa sation
n em employer m may ay pr prov
different ben benefits as as par part of
compe pens nsat ation ion t to e emplo loyees ees p perfor
ng wo work o
compar parable able char arac acter er i if:
The same The same bene benefit opti
are offe
red to all to all emp employe yees perf performing work of work of comp compara rable chara character. r.
Oregon’s gon’s A Adminis nistrat rativ ive R e Rules es - cont ntinued inued
Reduc ucti tions
in Compens pensati ation
n em employer m may ay not not r red educe t the he com
level of
an em employee t to
wit ith h the pr he provisions of
he law law.
Red circl Red circling, freez freezing or
se hol holding an an empl employe yee’s s compensation c ensation constant tant as other er e employees loyees c come i into to alignment a ignment are not consi not considered redu reduct ctions in s in the compe the compensation leve level for for the the empl employee whose whose compe compensa sation is is bein being hel held const constant.
Oregon’s gon’s A Adminis nistrat rativ ive R e Rules es - cont ntinued inued
Requ Required posti posting and noti and notice
Display the BOLI y the BOLI post poster r OR OR
Distributing the writt the written not notice ce to to each empl each employe yee perso personally by y by regu regular mai mail or
email, or
by incl including it with it with a a paych paycheck ck;
Incorporating the writt the written not notice ce into into a a hand handbook or k or manu manual made made avai available to to emp employe yees, s, whet whether in r in a a prin print or
elect ctronic form c format; or ; or
Posting the writt the written not notice ce in in a a consp conspicu cuous and access and accessible loca location in in each workp each workplace of
the employer or r or via via ele elect ctronic form c format that that is is reaso reasonably consp conspicu cuous and access s and accessible.
Oregon’s gon’s A Adminis nistrat rativ ive R e Rules es - cont ntinued inued
Violations
An empl employer comm r commits an s an unla unlawful comp compensa sation pract practice ce each time each time an an employee i loyee is remuner unerated i ated in violation o
Steps eps t to C Complianc liance
e the Comparabl ble e Charac acter eristic ics
ep 2: Upd pdate Job
escriptions
lyze every job against the Comparable Characteris istics defined by the organiz izatio ion
l compensatio ion information
lyze the Total l Compensatio ion of emplo loyees in grouping of Comparable Character
ify differences in Total Compensation
ion Plan, , if needed
St Steps t to Su
ccess
Knowledge Skill Effort Responsibility Working Conditions – “includes work environment, hours, time of day, physical surroundings and potential hazards encountered by an employee”
Steps eps t to C Complianc liance e - cont ntinued inued
St Steps t to Su
ccess
Do the organization’s job descriptions capture the information needed to assess the comparable characteristics as defined by your organization? Are the job descriptions an accurate reflection of the current work?
information Recommendation: Use a Job Analysis form or questionnaire, with a three step input and review process
Employee Input Supervisor review and input HR review
St Steps t to Su
ccess Steps eps t to C Complianc liance e - cont ntinued inued
St Steps t to Su
ccess
defined by the organization
Analyze the job, not the person or performance Be consistent in interpretation of information
same level of measurement each time, 2 years, 3 years or 4 years. We recommend the minimum, 2 years
Steps eps t to C Complianc liance e - cont ntinued inued
St Steps t to Su
ccess
The goal is to build a system of comparable character the provides as many unique jobs as possible. The more factors you have the more unique possibilities you have.
Steps eps t to C Complianc liance e - cont ntinued inued
St Steps t to Su
ccess
Total Compensation includes: Wages, benefits, and fringe benefits
pay for performance, certification pay, severance and anything else that results in pay (now or later)
vacation leave, education or training benefits, cell phone stipends, car allowances, gym memberships, moving allowance, or any other offering
NOTE: you only need to gather data for groups of comparable character with multiple employees or multiple jobs
Steps eps t to C Complianc liance e - cont ntinued inued
St Steps t to Su
ccess
Comparable Character (same job profile)
This is a monthly assessment If the organization offers the exact same benefits to each employee you
each employee
Steps eps t to C Complianc liance e - cont ntinued inued
Total C Comp mpensation E Example
Job Profile Job Title Employee ID Monthly wage Insurance Benefits* PTO Monthly 23442 Job 2 12 $2500 8 hours 23442 Job 2 13 $3000 8 hours 23442 Job 2 14 $2500 8 hours 23442 Job 2 19 $2500 8 hours 23442 Job 2 22 $2500 10 hours * The organization offers the same three plans to each employee. In all cases the employee pays 5% of the elected plan
St Steps t to Su
ccess
A seniority system (wit ithin the
ion); A merit system; A system that measures earnings by quantity or quality of production, including piece-rate work; Workplace locations; Travel, if travel is necessary and regular for the employee; Education (rela lated to the job); Training (rela lated to the job); Experience (rel elated to
he job job); or Any combination of these factors, if the combination of factors accounts for the entire compensation
Steps eps t to C Complianc liance e - cont ntinued inued
Verif rificatio ion Ex Example le
(using a g a seniority y system)
Job Profile Job Title Employee ID Monthly wage Insurance Benefits* PTO Monthly Seniority 23442 Job 2 12 $2500 8 hours 1.2 years 23442 Job 2 13 $3000 8 hours 2.5 years 23442 Job 2 14 $2500 8 hours 0.6 years 23442 Job 2 19 $2500 8 hours 2.4 years 23442 Job 2 22 $2500 10 hours 3.2 years
month probationary period
years the person is with the organization
St Steps t to Su
ccess
Job Profile Job Title EE ID Mth wage Ins. Benefit * PTO Mth Seniority Corrective Action 23442 Job 2 12 $2500 8 hrs 1.2 yrs 23442 Job 2 13 $3000 8 hrs 2.5 yrs 23442 Job 2 14 $2500 8 hrs 0.6 yrs 23442 Job 2 19 $2500 8 hrs 2.4 yrs 23442 Job 2 22 $2500 10 hrs 3.2 yrs Increase by $500 mth The organization will need to make the correction going forward and back pay the lost wages to January 1, 2019
Steps eps t to C Complianc liance e - cont ntinued inued
Overvie iew of
Pot
ial l Project T Timelin line
Step 1 1 month Step 2 2-3 months Step 3 1-2 month Step 4 2-4 weeks Step 5 1-2 months Step 6 1-2 weeks Step 7 1-2 weeks Step 8 3-4 weeks
6-12 months depending on size and amount of resource that can be assigned.
Steps eps t to C Complianc liance e - cont ntinued inued
Adminis inistrat ration C ion Considerat iderations ions
dbook u updates ates
Pay Prac Practice ce eval evaluation and remod and remodel, if need if needed
sment of current e ent employ loyee c ee compens pensation t ation to determine p ermine potential ential
and negotiation for for new hire new hires
Policies for s for reass reassignment of
work, trai training or
development, and and covera coverage
licies for t trans nsfer, fer, d demoti
promotion motion aligni igning w ng with p th pay e equity uity
Completion of
a Pay Pay Equ Equity Aud y Audit every three every three years years
Ques estions ions
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