What is pay equity?

Pay equity laws are intended to protect employees by ensuring that they receive compensation that is fair relative to their peers performing similar work.

How does it affect my organization?

Pay equity laws effect all employers. All employers should be aware of the pay equity laws that pertain to them. Depending on the type of business and its locations, a given organization may be subject to numerous laws from multiple states, making compliance a complicated and challenging task. This task is made more complex by the fact that not all laws are written the same way or provide the same protections. Some states, NJ, CA, NY, and OR for example, have significantly stricter pay equity laws than others. It is imperative for all organizations, regardless of size and scope, to be aware of and develop plans to ensure compliance with pay equity legislation.

Did you know New Jersey’s pay equity law went into effect on July 1, 2018? Learn more —>

The United States is continuing to shift to transparency and equity for all. In today's legislative environment this shift is occurring primarily at the state and local levels, but pay equity has emerged as a hot topic in political campaigns with many candidates signaling intent to further expand legislation at all levels of our government.

Those affected by Pay Equity Lawsuits:

  • Google: (October 2018) – Pending lawsuit that could affect ~8,300 women read more—>

  • Nike: (August 2018) – Pay inequity for women read more—>

  • Dell: (March 2018) - $2.9M settlement for race and gender read more —>

How can Sentinel HR help?

Sentinel HR follows a 4-step approach (GARS) in order to provide customers with the pay equity support they need to take them from their current state to full compliance.

  1. Gather - We work with your organization to understand how you pay and what factors you would like to reward as part of your compensation philosophy. We will then gather your pay incumbent level pay information and these factors and combine them in a way that allows us to conduct a statistical analysis.

  2. Analyze - The data file is then imported into our proprietary system to conduct analyses and identify any potential pay equity issues or areas of risk exposure.

  3. Remediation - Provide strategic consultation and recommendations to mitigate pay equity related risk.

  4. Sustainability - Develop pay levels, job descriptions and rubrics to establish fair pay baseline.

Sentinel HR also developed and uses a cutting-edge, proprietary tool called the Pay Equity Regression Tool (PERT) which provides an in-depth analysis of pay equity based on individual, and combined personnel characteristics. Learn more —>

What is the future of pay equity?

  • Federal vs. State vs. Local Legislation - The legislative landscape remains volatile as local and state governments enact new laws, adding layers of complexity. While the federal government has yet to enact any significant legislation the emergence and social significance of pay equity will almost certainly make it a key feature of the upcoming Presidential election cycle.

  • Managing Compliance and Mitigating Risk - The challenge of managing pay equity related risk will continue to grow as the legislative environment evolves. Forward thinking organizations must take steps now to analyze their current risk and build a foundation of equitable and defensible pay.

Are you interested in learning more about how Sentinel HR can help your organization manage pay equity related risk?  Contact us now for a free consultation!