Practical Steps for Building an Effective Pay Equity Self-Audit Program

Businesses are under increasing scrutiny regarding pay equity, both by internal stakeholders and external regulators. Further, pay equity is a significant component of many DEIA (Diversity, Equity, Inclusion, and Accessibility) programs, as well as an increasing focus of ESG (Environmental, Social, Governance). Achieving sustained pay equity, however, typically requires excellent compensation policies, annual self-auditing, and a budget to make annual pay equity adjustments. Simply put, it requires a program.

 

In this webinar, Craig Leen and Kathleen Parker will discuss step-by-step how to create a comprehensive and effective pay equity self-audit program. 

 

The learning objectives for the program are as follows:

 

•Analyze the primary federal and state laws that inform the legal standard in this area, including Title VII of the Civil Rights Act, Executive Order 11246, the Equal Pay Act, relevant OFCCP Directives, and related pay equity and pay transparency laws in California, New York, Illinois, and other states, while also addressing a few case examples that illustrate pay disparities that would potentially violate those authorities.

 

•Identify the internal employees/departments and external professionals who would be needed to develop a comprehensive and effective pay equity self-audit program. Discuss the importance of setting up the program under attorney-client privilege to the extent possible, and the types of experts (such as economists or I/O psychologists) that would be brought in to conduct the self-audit. Review the steps to creating the program, including setting compensation policies, establishing pay analysis groups (also known as similarly situated employee groups), determining the factors used to set compensation, determining how pay disparities will be evaluated, and setting a budget that allows for sufficient pay equity adjustments.

 

•Identify legal guidelines, best practices to follow, and concerning practices to avoid. Discuss the importance of setting starting pay in an equitable manner (and without regard to prior pay), the need to consider equity in promotions as part of pay equity, the importance of auditing for wage compression, and the key influence that supportive caregiver and parental leave policies have on pay equity.

BIOS

Craig E. Leen is a partner at the firm's Washington, D.C. office. He is a member of the Labor, Employment, and Workplace Safety practice group, and co-leads the firm’s OFCCP and Affirmative Action Compliance area of focus. His depth of experience spans across federal, state, and local government, as well, as the private sector.
 
Prior to joining the firm, Craig served as Director of the Office of Federal Contract Compliance Programs (OFCCP), a federal civil rights enforcement agency at the U.S. Department of Labor. In this role, Craig reported directly to the Secretary and Deputy Secretary of Labor; overseeing approximately 450 employees and a budget of over $105 million, with a mission to ensure compliance by federal contractors with equal employment opportunity and non-discrimination obligations.
 
During his tenure, OFCCP experienced record years in both enforcement recoveries and compliance assistance, with Craig overseeing three rulemakings and issuance of several technical assistance guides to help employers comply with the law. Likewise, as an agency head at the U.S. DOL, Craig worked directly with numerous other federal agencies, including the Wage & Hour Division (WHD), the Occupational Safety & Health Administration (OSHA), the Office of Disability Employment Policy (ODEP), and the Equal Employment Opportunity Commission (EEOC).
 
From his leadership experience at OFCCP and U.S. DOL, Craig provides clients who conduct business with the federal government a wealth of experience and insight into the enforcement of equal employment opportunity regulations, including compliance with affirmative action and nondiscrimination obligations. Likewise, he provides frequent advice to clients on developing comprehensive diversity, equity, inclusion, and accessibility (DEIA) programs and pay equity self-audits. Finally, Craig’s knowledge and experience with the regulatory process is of significant value in providing counsel as to agency rulemakings under the Administrative Procedure Act.
 
Craig's experiences prior to OFCCP as a government attorney at the municipal and county levels in Florida also provide him a unique vantage point to advise clients on all aspects of regulatory compliance at multiple levels of government.
 
 
Kathleen Parker is a partner in the firm's Boston office, where she is a member of the labor, employment & workplace safety practice group and co-chair of the office’s Hiring Committee. Kathleen focuses her practice on counseling international and domestic businesses on various employment issues, including preparing and revising internal policies, navigating pre- and post-employment relationships, and properly classifying employees and contractors. She also regularly conducts discrimination and harassment prevention training for corporate clients, represents businesses in civil and administrative employment litigation matters, and conducts internal employment investigations on behalf of her clients. Kathleen is dedicated to working with her clients to achieve their business goals while also ensuring compliance with constantly evolving employment laws.
 
Kathleen's employment-related work is complemented by her significant experience representing clients in complex commercial disputes in both state and federal court, responding to inquiries from the Department of Justice and Securities and Exchange Commission, and conducting internal investigations in connection with government enforcement actions.
 
Kathleen is also passionate about providing pro bono clients with legal representation and frequently advises non-profit organizations in various ways, including drafting employee handbooks and policies and advising on hiring and termination-related matters. In 2018, Massachusetts Lawyers Weekly recognized Kathleen with an Excellence in the Law-Pro Bono Award for her pro bono work helping to secure the release of Fred Weichel, who was wrongfully imprisoned for more than 36 years for a crime he did not commit.
 
In addition to serving as co-chair of the Boston office’s Hiring Committee, Kathleen is chair of the Boston office's chapter of the firm's Women in the Profession (WIP) Committee and a member of the Firmwide WIP Committee, US Local WIP Leadership Committee, and Professional Development Committee.