As predictions abound regarding what a Trump presidency will mean for employers, including which laws and regulations might be amended, scaled back, or repealed all together, the issue of pay equity is likely here to stay. Over the past year, numerous states – including several with Republican governors – have enacted aggressive equal pay legislation, following California’s lead in 2015. Additionally, activist shareholder groups continue to exert pressure by filing proposals that, if passed, require companies to disclose publicly the percentage “pay gap” between male and female employees, and planned steps to address it. And while pay equity is not at the top of Trump’s political agenda, his daughter Ivanka has been an equal pay advocate, perhaps signaling that the EEOC’s final rule requiring employers with more than 100 employees to report W-2 pay data to the federal government through new EEO-1 reporting requirements may not be on the Trump chopping block. Accordingly, smart employers will stay the course on equal pay, including by following these recommendations:
Posts by: Erin Connell
As we noted in a previous post, Maryland Governor Larry Hogan signed the Equal Pay for Equal Work Act of 2016 (“Equal Pay Act”) into law on May 19, 2016 (effective on October 1, 2016). With the passage of this new law, Maryland joins New York and California in the category of states with some of the country’s most expansive equal pay protections. Included below are our updated maps of states with equal pay protections and of states with equal pay protections and states with pending equal pay legislation.
What many were hoping would bring clarity to California’s Fair Pay Act, further left employers in the dark on how to interpret the Act.
On April 29, 2015, Plaintiff Lynne Coates filed a class action lawsuit against Farmers alleging gender discrimination claims under Title VII and California’s Fair Employment and Housing Act, as well as violations of the federal and California equal pay acts and California’s Private Attorneys General Act. Coates claimed that Farmers systematically discriminated against female attorney employees and that its “common compensation and promotion policies and practices resulted in lower pay and unequal promotions for female attorneys.”
Three months after the California Fair Pay Act took effect on January 1, 2016, the California Division of Labor Standards Enforcement (“DLSE”) has issued answers to FAQs about the new law, which by all counts is the most employee-friendly equal pay law in the nation. But for California employers who anxiously have been awaiting official guidance on the Act’s many new terms and standards, the FAQs provide little satisfaction. Rather, they focus more on informing employees on how to bring a claim. Nor has the DLSE otherwise spoken publicly about how it plans to enforce the new law; instead, the agency appears to be taking its time and exercising caution as it potentially sets the stage for the rest of the nation.
Following months of waiting the UK Government has finally published its draft regulations on the new “gender pay gap reporting” requirements in the UK. On publication of the draft regulations, the UK Government has asked one final consultation question: “What, if any, modifications should be made to these draft regulations?” – And so it would appear that the draft regulations are nearing but possibly not quite in final form, pending any pertinent responses received.
More than three years after the Office of Federal Contract Compliance Programs (OFCCP) first announced its intent to issue a new Scheduling Letter and Itemized Listing, the Agency finally has obtained approval to do so from the White House Office of Management and Budget (OMB). The OFCCP’s Scheduling Letter provides a contractor with notice of its selection for a compliance evaluation (audit), and the Itemized Listing constitutes OFCCP’s standard initial request for submission of the contractor’s Affirmative Action Plan and supporting personnel activity and compensation data. OFCCP announced the OMB approval in a September 30, 2014 Notice, and published the final versions of the Scheduling Letter and Itemized Listing on October 1, 2014.