SUMMER 2019 TODAY’S GENER AL COUNSEL
WORKPLACE ISSUES
Fair Pay Audits Can Help in the Event of Litigation By Denise M. Visconti and Aaron D. Crews
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he federal Equal Pay Act has been on the books for over 50 years. Although the wage gap between working men and women has decreased over that time, it nonetheless remains. Current estimates predict that, unless something changes, men and women will not reach wage parity until 2059. Meanwhile, the news cycle every day is replete with new laws — and new lawsuits — aimed at encouraging (or forcing) companies to create workplaces that promote equality and fairly compensate all employees. More and more states are considering implementing pay equity statutes, adding to the already complex web of state and local laws addressing fair pay. The pressure on corporate leaders and in-house counsel to comply is immense. The question is how.
Denise M. Visconti is a shareholder at Littler Mendelson, where she represents clients in a broad range of employment litigation matters, including wage and hour class action litigation. She also regularly conducts pay equity audits for employers. DVisconti@Littler.com Aaron D. Crews is Littler’s Chief Data Analytics Officer. With an extensive background focused on the intersection of technology, business and the law, he leads the firm’s data analytics practice and strategy. acrews@littler.com
One of the best ways for companies to assess compliance is to conduct a compensation audit that evaluates whether differences in pay are supported by legitimate business considerations. Such an audit, which should be conducted under attorney-client privilege, can identify any salary differentials to be rectified. In Littler’s 2019 Employer Survey of more than 1,300 in-house counsel, HR professionals and C-suite executives, nearly half of respondents
(48 percent) said they have conducted audits of their pay practices and compensation data. Taking a proactive look at pay can stave off a claim or a lawsuit. But a compensation audit also can inform and prepare companies if that claim or lawsuit is filed. If your company is in the unenviable position of receiving a complaint of unequal pay from an employee, or worse yet a lawsuit, a pay audit can put you in