The Sloan Law Firm PLLC

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A Forward-Thinking Firm

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What do you know about being proactive about wage inequities?

by | Oct 5, 2021 | Employment Litigation

You opened a small business recently, and you already hired a few employees. They receive what you feel represents a fair wage, but you want to get ahead of potential disputes concerning wage inequity.

Chron breaks down ways to resolve pay inequity disputes before they happen. Learning how to get ahead of and respond to a wage issue could save you a lot of time and your company’s reputation.

Understand the law

Research the Lilly Ledbetter Fair Pay Act of 2009 and the Equal Pay Act of 1963. You could discover case law that either relates to your current wage issue or could cause employees to file a complaint against you later. If you suspect you might have an issue, getting help sooner rather than later could save you a lot of frustration.

Use employee census records

Get ahead of potential wage disputes with employee census records. You may uncover pay equity issues before your employees do. Specific employee groups may have pay equity issues, so focus on individual workers and departments. It may help to divide your findings into tenure, position, race, sex and age. Do not forget to account for non-job-related components.

Examine employee compensation records

Other than comparing wages with job descriptions, look for potential pay disparities between female and male employees. Workers could feel you pay them less because of their age, so make sure that does not become an issue. Your company’s internal pay practices may reward certain workers with greater training opportunities, wages, bonuses or raises. A few adjustments may balance the scales.

Setting your pay practices on automatic could cost you and your employees. Occasional checks for pay inequity issues may help you keep your company’s top talent.