In a bylined article for SHRM, New Jersey partner Kathleen McLeod Caminiti and associate Sarah Wieselthier remind employers to consider pay equity as they wrap up performance reviews, dole out bonuses and bump up base pay. When conducting a pay equity audit to surface any inadvertent discrepancies, employers should consider the following questions:
- Are compensation decisions based on objective or subjective criteria?
- Is there documentation to justify pay decisions?
- If pay differentials are based on performance, do performance appraisals and documentation support the decisions?
- Are there legitimate factors other than gender or other covered characteristics that justify a pay disparity between employees performing substantially similar work?
Depending on the answers, adjustments should be made before compensation decisions are finalized to ensure that they are based on objective, well-documented criteria and that any disparities among employees who perform substantially similar work are due to legitimate reasons identified under the applicable laws. In some locations across the country, employers are not allowed to base wage differentials on salary history.
To read the full article, visit SHRM.
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