Contenu connexe Similaire à Practical Compensation Compliance Strategies for 2016 (20) Plus de Human Capital Media (20) Practical Compensation Compliance Strategies for 20161. #TMwebinar
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7. #TMwebinar
Lauren
Dixon
Associate
Editor
Talent
Management
magazine
Prac6cal
Compensa6on
Compliance
Strategies
for
2016
8. #TMwebinar
Murray
Simpson
Manager,
Consul<ng
Services
PeopleFluent
Prac6cal
Compensa6on
Compliance
Strategies
for
2016
9. ©
PeopleFluent
2015
Practical Compensation Compliance
Strategies for 2016
Murray Simpson, Ph.D.
PeopleFluent Research Institute
10. 10
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• PeopleFluent
Research
Ins<tute
(PRI)
–
Who
We
Are
• Compensa<on
Compliance
Landscape
• President
Obama
and
the
Wage
Gap
• Equal
Employment
Opportunity
Commission
(EEOC)
• Office
of
Federal
Contract
Compliance
Programs
(OFCCP)
• Wage
and
Hour
Division
(WHD)
of
Department
of
Labor
• Job
Steering:
A
Dangerous
Intersec<on
Ahead
• Prac<cal
Strategies
Overview
11. 11
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• A
team
of
experts
and
support
staff
who
specialize
in:
– Evalua<ng
allega<ons
of
discriminatory
employment
prac<ces
– Assessing
claims
that
wage-‐and-‐hour
laws
have
been
violated
– Advising
clients
on
risk-‐mi<ga<ng
improvements
in
their
human
resource
systems
and
prac<ces
PRI – Who We Are
12. 12
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• Manager,
Consul<ng
Services
• Ph.D.
in
Economics
• 15
years
experience
as
a
tes<fying
and
consul<ng
expert
• Taylor
and
Harley,
et
al.
v.
SSA
• Sco:,
et
al.
v.
City
of
New
York
• Valladon,
et
al.
v.
City
of
Oakland
• Formerly
an
associate
professor
of
economics
Dr. Murray Simpson
13. 13
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Compensa6on
Compliance
Landscape
14. 14
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• On
January
29,
2009,
nine
days
a`er
his
inaugura<on,
President
Obama
signed
the
Ledbeaer
Fair
Pay
Act,
making
it
easier
for
women
to
challenge
unequal
pay
• In
January
2010,
the
President
announced
the
crea<on
of
the
Na<onal
Equal
Pay
Enforcement
Task
Force
to
specifically
address
issues
of
pay
discrimina<on
• President
has
charged
the
federal
agencies
on
the
task
force
with
elimina<ng
the
wage
gap
President
Obama
and
the
Wage
Gap
Females
$0.77
Males
$1.00
Hispanic
Females
$0.55
Black
Females
$0.64
15. 15
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• Equal
Pay
Act
of
1963
(EPA)
• Title
VII
of
the
Civil
Rights
Act
of
1964
(CRA)
• Age
Discrimina<on
in
Employment
Act
of
1967
(ADEA)
• Americans
with
Disabili<es
Act
of
1990
(ADA)
• Gene<c
Informa<on
Nondiscrimina<on
Act
of
2008
(GINA)
• LedbePer
Fair
Pay
Act
of
2009
(LFPA)
EEOC
Equal Employment
Opportunity Commission
(EPA, Title VII of CRA, ADEA,
ADA, GINA, LFPA)
Any employer
15 or more employees
Equal
Employment
Opportunity
Commission
16. 16
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• One
of
six
na<onal
priori<es
is
enforcing
equal
pay
laws
• “The
EEOC
will
target
compensa<on
systems
and
prac<ces
that
discriminate
based
on
gender.”
• Emphasis
placed
on
direct
inves<ga<ons
and
Commissioner
charges
as
modes
of
enforcement
• Priority
given
to
class
charges
of
unequal
pay
discrimina<on
• Seek
greater
collabora<on
with
OFCCP,
Dept.
of
Jus<ce,
and
plain<ffs’
bar
to
iden<fy
employers
engaging
in
pay
discrimina<on
EEOC’s
Strategic
Enforcement
Plan
17. 17
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Direct Investigations of Unequal Pay
• EEOC
typically
must
wait
for
a
charge
of
discrimina<on
to
be
filed:
• Individual
charge,
class
charge,
Commissioner’s
charge
• However,
the
Equal
Pay
Act
is
enforced
pursuant
to
the
FLSA,
giving
the
EEOC
the
authority
to:
• Ini<ate
inves<ga<ons
of
Equal
Pay
Act
viola<ons
without
any
prior
charge
of
pay
discrimina<on
(“direct
inves<ga<ons”)
• Used
sparsely
in
the
past,
but
now
expanding
such
inves<ga<ons
18. 18
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Footnote:
CA,
NY
Revise
Their
Equal
Pay
Laws
• What
mo<vated
the
revisions?
• Statewide
gender
pay
gap
• Repeated
failure
of
Congress
to
pass
the
Paycheck
Fairness
Act
• Three
main
revisions
(among
others)
• More
challenging
for
employers
to
assert
some
legal
defenses
used
in
the
past
• Pay
transparency
• Broader
defini<on
of
“same
establishment”
(CA
in
par<cular)
19. 19
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• Compensa<on
is
a
top
priority
• Compensa<on
Direc<ve
307
• Item
19
of
Revised
Scheduling
Leaer
• Pay
Transparency
• Equal
Pay
Report
Office of Federal Contract Compliance Programs
OFCCP
Office of Federal Contract
Compliance Programs
(Executive Order11246,
Section 503, VEVRAA)
Federal contractor
50 or more employees
20. 20
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• OFCCP
issued
the
direc<ve
on
February
28,
2013
• Provides
guidance
to
the
agency’s
compliance
officers
on
how
to
conduct
an
inves<ga<on
of
a
federal
contractor’s
compensa<on
prac<ces
during
a
compliance
evalua<on
• Affords
them
greater
la<tude
and
discre<on
than
the
previous
standards
that
were
in
place
from
2006-‐2013
Compensation
Direc<ve
307
21. 21
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• Effec<ve
as
of
October
2014
• Employee-‐level
compensa<on
data
–
no
longer
submit
aggregated
data
• Required
to
submit
the
following
for
each
employee
• Gender
and
race/ethnicity
• Hire
date
• Job
<tle,
job
group
and
EEO-‐1
category
• Base
salary
or
wage
• Hours
worked
in
a
typical
workweek
• Other
compensa<on
or
adjustments
to
salary
such
as
bonuses,
incen<ves,
commissions,
merit
increases,
locality
pay
or
over<me,
each
iden<fied
separately
for
each
employee
Revised
Scheduling
Leaer
–
Item
19
22. 22
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• May
(but
not
obligated
to)
provide
addi<onal
data
on
factors
used
to
determine
employee
compensa<on
such
as:
• Educa<on
• Past
experience
• Duty
loca<on
• Performance
ra<ngs
• Department
or
func<on
• Salary
level,
grade
or
band
• Should
include
documenta<on
and
policies
related
to
compensa<on,
par<cularly
those
that
explain
factors
and
reasoning
used
to
determine
compensa<on
Revised Scheduling Letter – Item 19
23. 23
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• Final
rule
expected
to
be
issued
in
Spring
2016
• Filing
period
is
January
1
–
March
31
of
each
year
• Covers
the
same
employees
included
in
the
federal
contractor’s
most
recent
EEO-‐1
report
• For
each
EEO-‐1
job
category,
report
the
following
for
males
by
race
category
and
then
again
for
females
by
race
category
• Total
number
of
employees
• Total
W-‐2
pay
• Total
work
hours
Equal
Pay
Report
(proposed)
24. 24
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• To
compare
federal
contractors
in
the
same
industry
• Likely
defined
by
two-‐digit
primary
NAICS
codes
• For
each
contractor
in
a
given
industry,
compute
the
ra<o
of,
say,
female
to
male
W2
pay
(“pay
ra<o”)
• Adjusted
for
total
hours
worked?
By
EEO-‐1
category?
Companywide?
• Place
the
contractors
in
descending
order
from
the
highest
pay
ra<o
down
to
the
lowest
pay
ra<o
• Consider
for
a
compliance
audit
those
contractors
with
pay
ra<os
below
some
“industry
standard”
determined
by
the
OFCCP
Equal
Pay
Report
–
Its
Probable
Use?
25. 25
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• Final
regula<ons
(“Prohibi<ons
Against
Pay
Secrecy
Policies
and
Ac<ons”)
published
by
the
OFCCP
on
Sept.
11,
2015
• Regula<ons
apply
to
contracts
or
subcontracts
over
$10,000
that
are
entered
into
or
modified
on
or
a`er
January
11,
2016
• Federal
contractor
cannot
discriminate
or
retaliate
against
applicants
or
employees
for
inquiring
about,
discussing
or
disclosing
compensa<on
informa<on
• Extends
beyond
the
“concerted
ac<vity”
protec<ons
afforded
by
the
NLRB-‐-‐
applicants
and
supervisors
are
included
in
the
OFCCP’s
regula<ons
Pay
Transparency
Regula<ons
26. 26
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
DOL’s
Wage-‐and-‐Hour
Division
(WHD)
• Fair
Labor
Standards
Act
of
1938
(FLSA)
• Migrant
and
Seasonal
Agricultural
Worker
Protec<on
Act
if
1983
(MSPA)
• Employee
Polygraph
Protec<on
Act
of
1988
(EPPA)
• Family
and
Medical
Leave
Act
of
1993
(FMLA)
• Also:
• Wage
garnishment
provisions
of
Consumer
Credit
Protec<on
Act
• Prevailing
Wage
Requirements
of
Davis
Bacon
Act
and
Service
Contract
Act
WHD
Wage-and-Hour Division
(FLSA, MSPA, EPPA,FMLA,
Other Provisions)
27. 27
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• New
rule
proposing
changes
to
the
exemp<ons
for
execu<ve,
administra<ve,
professional
and
highly-‐compensated
employees
• Rule
was
published
in
the
Federal
Register
on
July
6
(Note:
60-‐day
public
comment
period
closed
on
September
4
with
nearly
250,000
comments)
• No
changes
proposed
in
the
du<es
standards
for
these
exemp<ons,
only
the
salary
thresholds
• Increases
the
minimum
salary
level
for
the
execu<ve,
administra<ve,
and
professional
exemp<ons
from
$455
per
week
($23,660
per
year)
to
$921
per
week
($47,892
per
year),
subject
to
annual
increases
therea`er
• For
highly
compensated
employees,
in
addi<on
to
at
least
$921
per
week
on
a
salary
basis,
the
rule
increases
the
minimum
total
annual
compensa<on
from
$100,000
to
$122,148,
subject
to
annual
increases
therea`er
“White Collar” Overtime Exemptions
28. 28
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Job Steering:
A Dangerous Intersection
Ahead
29. 29
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
What Is Job Steering?
• Occurs
when
an
employer
channels
applicants
or
employees
to
lower-‐
or
higher-‐paying
jobs
based
on
characteris<cs
protected
under
an<-‐discrimina<on
laws,
such
as
gender
or
race
• Examples
• Direc<ng
Hispanic
job
seekers
to
apply
only
for
certain
jobs
even
though
they
are
qualified
for
other
higher-‐paying
jobs
• Hiring
qualified
female
applicants
dispropor<onately
into
cashier
posi<ons
rather
than
higher-‐paying
sales
associate
posi<ons
• Informing
only
qualified
White
employees
of
opportuni<es
to
post
for
par<cular
promo<ons
30. 30
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Job Steering and Enforcement Agencies
• Job
steering
has
long
been
on
the
radar
of
the
EEOC
• Direct
reference
to
prac<ce
in
2000
when
Sec<on
10
(“Compensa<on
Discrimina<on”)
of
EEOC
Compliance
Manual
was
issued
• “Racial
Steering”
specifically
referenced
in
2006
when
Sec<on
15
(“Race
and
Color
Discrimina<on”)
of
the
manual
was
issued
• EEOC
specifically
men<ons
in
its
2013-‐2016
Strategic
Enforcement
Plan
“the
channeling/steering
of
individuals
into
specific
jobs
due
to
their
status
in
a
par<cular
group.”
31. 31
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Job Steering and Enforcement Agencies
• More
recent
focus
by
OFCCP
on
job
steering
• Compensa<on
Direc<ve
307
•
Agency
instructs
compliance
officers
to
examine
any
employment
prac<ces
that
may
lead
to
pay
dispari<es,
including
“differences
in
job
assignment
or
placement”
• Sealement
with
G&K
Services
Company
(November
2013)
• Seales
allega<ons
raised
by
OFCCP
that
the
company
steered
female
laundry
workers
to
lower-‐paying
“light
duty”
jobs
compared
to
male
laundry
workers
assigned
to
higher-‐paying
“heavy
duty”
jobs
• Sealement
with
Comcast
Corpora<on
(April
2015)
• Seales
allega<ons
that
the
company
steered
women
into
lower-‐
paying
posi<ons
that
assisted
customers
with
cable
services
compared
to
males
assigned
to
higher-‐paying
“technical”
posi<ons
providing
customer
assistance
for
Internet
services
32. 32
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Practical Strategies for 2016
33. 33
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Is
Your
Company
at
Risk?
Some
Helpful
Ques<ons
34. 34
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
The
Path
to
Fair
Compensa<on
Last
<me
analyzed
compensa<on
prac<ces
for
pay
dispari<es?
Any
employees
voicing
complaints?
How
confident
that
pay
prac<ces
can
withstand
scru<ny?
How
similar
to
compe<tors
who
lost
or
sealed
a
lawsuit?
Ques<ons
to
assess
company’s
risk
of
pay
discrimina<on
claims
35. 35
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
The
Path
to
Fair
Compensa<on
Understand
the
legal
founda<ons
for
a
finding
of
discrimina<on
Protected
statuses
Legal
theories
of
discrimina<on
Standards
for
comparing
employees
36. 36
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
The
Path
to
Fair
Compensa<on
Start
with
a
clearly
ar<culated
ques<on
Form
appropriate
comparison
groups
Refine
analysis
as
gain
greater
insight
Determine
which
sta<s<cal
model
to
apply
Understand
the
sta<s<cal
founda<ons
for
a
finding
of
discrimina<on
37. 37
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Pay Variables
Analyzed
• Base Pay
• Bonuses
• Merit Increases
• Overtime Pay
• Commissions
Conduct a Comprehensive
Self-Audit
Adopt a methodology
that examines distinct
comparison groups as
well as patterns across
groups
Adopt a
methodology that
mimics OFCCP
1
Company-wide
Race/Gender
Analysis
2
OFCCP-Style Analysis by
AAP
3a
Decide what pay
disparities merit
further investigation
3b
Determine pay
equity adjustments
if needed
38. 38
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
The
Path
to
Fair
Compensa<on
Iden<fy
employees
in
2015
EEO-‐1
Report
filed
in
August/September
Iden<fy
employees
who
subsequently
terminated
by
year
end
Combine
informa<on
into
proper
repor<ng
format
Collect
W2
pay
and
total
work
hours
for
each
employee
If
a
federal
contractor,
conduct
a
dry-‐run
for
the
Equal
Pay
Report
39. 39
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
The
Path
to
Fair
Compensa<on
Iden<fy
salaried
exempt
employees
with
annual
salaries
less
than
$47,892
(or
perhaps
$50,440)
Iden<fy
highly-‐compensated
exempt
employees
with
total
annual
compensa<on
between
$100,000
-‐
$122,148
Increase
salary/
compensa<on
to
maintain
exempt
status
or
allow
employees
to
become
non-‐
exempt?
An<cipate
the
impact
of
proposed
revisions
to
white-‐collar
exemp<ons
40. 40
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
Conduct Manager Training
Training
Should
Be
An
Ongoing
Process
Train managers on EEO
and AA regulations
Training
Training
Training
Train managers on
evaluating
performance and
making equitable
compensation
decisions
Train managers on
overtime regulations,
including the salary
and duties tests for
exemptions
41. 41
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
• Stay
informed
of
changes
in
the
compensa<on
compliance
landscape
• Expand
your
knowledge
of
the
legal
and
sta<s<cal
founda<ons
for
discrimina<on
claims
• Conduct
a
comprehensive
pay
equity
self-‐audit
• Prepare
for
the
Equal
Pay
Report
and
the
revised
white
collar
exemp<ons
• Promote
manager
training
2016
can
be
a
good
year
if
you….
42. 42
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
43. 43
©
2015
PeopleFluent
|
Confiden<al
Prac<cal
Compensa<on
Strategies
for
2016
www.peoplefluent.com
@PeopleFluent
Facebook
/
PeopleFluent
LinkedIn
/
PeopleFluent
www.peoplefluent.com/peoplefluent-‐blog
Murray.Simpson@peoplefluent.com
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