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What to Know About Pay Equity in 2021

Pay equity has been a hot topic for several years. Although the pay gap has narrowed greatly, women are still paid less than men in a lot of cases. Some minorities are also paid less than their counterparts. There are various laws surrounding pay equity in the workplace to protect against discrimination. Pay equity also impacts the way potential employees and other people in the industry view your organization. So, it is an important thing to pay attention to as an employer. Here is what you need to know about pay equity in 2021.

Know the Laws

There are numerous laws around today that help protect employees from wage discrimination. Two of the main laws involving pay equity are the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964. These are federally enacted protections to help workers avoid pay discrimination in the workplace.

Many states have other laws in place as well. For example, in Massachusetts, it is illegal for employers to ask their workers to refrain from discussing their salaries. It is also against the law to ask employees about their pay rate history. California is another state that has taken a stand for pay equity. The state’s laws say that employers are required to provide equal pay for similar work.

Some areas may also require companies to provide wage reporting. This means that employers are required to report employee pay data directly to the government, making it easier to identify companies that aren’t following the rules.

Be Aware of Changes

As an employer, it is important to be aware of the state and federal laws mentioned above. It is also a good idea to regularly audit your pay practices. If there is a change in the law in your state, revisit your employee compensation and identify where you need to make changes yourself. In California, for instance, employers are required to provide objective criteria for salary rates.

Additionally, many states require you to consider incumbent salaries as well. This means if you are offering a new hire a certain salary, you need to be sure you are paying your current staff the same rate. Some newer pay equity laws also prohibit employers from giving incoming employees their asking rate if it is less than what their coworkers are making.

Have an Idea of What Employees Are Looking For

Being on top of these laws and being able to offer competitive pay rates gives you an advantage as an employer. Top talent in your industry will know what the pay equity laws are and know how to leverage them when negotiating their own salaries. Younger applicants are especially apt to use this information for negotiation purposes. So, if you are looking to bring on new employees, be aware that they know what they should be paid and are knowledgeable of the laws in your state.

When it comes to adjusting pay rates, working with a staffing agency can be a great help. The team of professionals at The Bradley Group can give you rate suggestions based on the job, experience needed, and what employees in the industry are looking for. Contact us to see how we can assist you.

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