Today Is Equal Pay Day – What Employers Need to Know

Equal Pay Day, which falls on March 26 this year, is the date that symbolizes how far into the current year women must work to earn the same amount that men earned in the previous year. Equal Pay Day originated in 1996 by the National Committee on Pay Equity to bring public awareness to the wage gap between men and women.

Although there has been significant improvement in the wage gap since 1996, pay disparities still exist. Equal Pay Day is a good reminder for employers that employee compensation remains an important focus for applicants, employees, plaintiff’s representatives (including attorneys and labor unions), and enforcement agencies. 

Recommendations for Employers on Equal Pay Day:

• If you haven’t done an external market analysis, created a pay structure, or reviewed internal pay equity in the past 1-3 years, it’s time.

• The growing patchwork of state and local pay reporting and pay transparency laws has made compliance complex, with differing requirements about the pay disclosures that are required and to whom. Most employers are moving towards a uniform compliance strategy that ensures compliance and attracts the right talent.

• It’s important to recognize the days of pay secrecy are coming to a quick close. Reviewing your compensation systems to ensure they are working as intended, fair, and externally competitive are a key part of your response.

• Don’t forget about wage compression.

   

Join us on April 8 as two of our experts highlight practical steps HR, Total Rewards, and Legal/Compliance teams can take to manage the current landscape of pay transparency requirements, pay data reporting, and equal pay enforcement.