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Pay Equity: HR Compliance Trend to Watch

Pay Equity: HR Compliance Trend to Watch

Several jurisdictions are expanding and clarifying their laws prohibiting gender-based discrimination in pay, including restricting employers from making inquiries into an applicant’s pay history during the hiring process. This is because a candidate’s pay history may reflect discriminatory pay practices of a previous employer, which then could result in lower wages in the new job. While these laws differ among jurisdictions, they typically prohibit employers from seeking compensation history from an applicant or his/her current or former employer. Generally, employers are also prohibited from screening applicants based on their pay histories, including by requiring that an applicant’s prior compensation satisfy minimum or maximum criteria. The following jurisdictions have enacted these types of restrictions: Oregon (effective October 6, 2017) New York City, NY (effective October 31, 2017) Delaware (effective December 14, 2017) Massachusetts (effective July 1, 2018) San Francisco (effective July 1, 2018) Philadelphia (blocked due to pending litigation – watch for developments) If you are covered by one of these laws, remove salary history questions from application forms and...

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CPA Practice Advisor Features ADP’s 5 Tips to Help Navigate Pay Equity

CPA Practice Advisor Features ADP’s 5 Tips to Help Navigate Pay Equity

CPA Practice Advisor published an article by Ellen Feeney, vice president and counsel in ADP’s Global Compliance Group,titled “5 Tips to Help Navigate Pay Equity,” which provides accounting firms with some best practices regarding equitable pay practices. “As yet another regulatory deadline looms, you’d think companies would be making EEO-1 compliance a priority. Interestingly, that’s frequently not the case. According to ADP Research Institute® data, when it comes to awareness of the new EEOC requirements, just over half of midsized and nearly three-quarters of large companies are aware of these requirements, but only 20 percent report having a plan in place to manage them. And just about half of companies feel extremely or very confident they will be able to comply with the law by 2018.” Read the entire article at CPA Practice Advisor. Share this:Click to email (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Google+ (Opens in new window)Share on Facebook (Opens...

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Are Employers Ready to Tackle Pay Equity?

Are Employers Ready to Tackle Pay Equity?

Ahu Yildirmaz, Ph.D. Vice President, ADP Research Institute

The Equal Employment Opportunity Commission (EEOC) has expanded its EEO-1 form to require many employers to submit more information and provide greater transparency around their pay practices. Yet, according to ADP’s 2016 Compliance Confidence Study[1], almost half of organizations responded that they weren’t confident in their ability to comply with the EEOC rule by the 2018 deadline. So, if they’re not ready, where should employers start? Examining their payroll and HR data is key. The data collection needed to comply with the EEOC rules can help organizations uncover and analyze inequitable pay practices, which oftentimes exist without their knowledge. In our latest whitepaper on pay equity, ADP outlines a few steps employers can take when getting started with data: Get familiar with the latest EEOC compliance rules – and how reporting needs to change: Starting in March 2018, employers with at least 100 employees (or those with 50 or more employees that have a federal government contract) will be required to submit an expanded EEO-1 form including additional information...

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