Since January 1, 2018, California law has prohibited employers from asking applicants about their salary history. Earlier this month, Governor Jerry Brown signed AB 2282 into law to clarify several aspects of the salary history ban.
Originally published by Bloomberg Law.
Pay equity is a hot button issue for employers in the United States for a number of reasons—reputational concerns are triggered with increasing shareholder demands for transparency; activist investor groups are pushing companies, particularly in the financial services and technology industries, to disclose gender pay data; and, in the wake of pay equity in the news, employees are asking more questions about the issue.
Compounding the pressure, the gender pay gap also can impact talent acquisition. A recent Glassdoor survey found that 67% of US employees say they would not apply for jobs at employers where they believe a gender pay gap exists. The impact is magnified when looking at millennials. Approximately 80% of millennials, as noted in the Glassdoor survey, say they would not even apply for a job if they believed the company had a gender pay gap, which drives home the point that focusing on equality is, among other things, essential for a positive employer brand in the US market.
Click here to read on.
On June 20, our partners Bill Dugan and Meredith Kaufman presented to the New York City chapter of the ACC on Minding the (Gender Pay) Gap. Along with two in-house counsel panelists, Meredith and Bill discussed strategies for complying with equal pay protections under state and local laws and narrowing the pay gap.
One clear theme of the panel discussion was that pay equity cannot be viewed in a vacuum. As Meredith explained:
With equal pay protections expanding, it’s a critical time for clients to identify and rectify unjustified pay disparities between men and women. An effective remediation plan may include salary increases, but employers also need to address systemic bias and harassment to root out pay inequality.
Another takeaway was the importance of maintaining the attorney-client privilege when conducting pay audits. Bill noted:
We regularly undertake pay audits, including an in-house analysis of data, for our clients. Conducting these audits under privilege allows us to identify potential exposure and advise on strategies to reduce legal risk, while protecting the analysis from disclosure as much as possible.
For more on how Baker McKenzie is assisting clients with their gender pay and pay equity compliance, please visit our Gender Pay Gap webpage.
Two recent events in the US vividly illustrate the growing centrality of gender pay equity issues. On one side of the ledger, in early April 2018, the US Court of Appeals for the Ninth Circuit, in Rizo v. Fresno County Office of Education, held that an employee’s prior salary—either alone or in a combination of factors—cannot be used to justify paying women less than men in comparable jobs. On the other side of the ledger, the US Department of Labor’s Office of Federal Contract Compliance Programs, on April 20, 2018, announced that it is upending standards implemented during President Obama’s administration designed to promote gender pay equity among federal contractors. Under this new policy, employers will be able to decide for themselves how their employees should be categorized and analyzed for purposes of fair pay investigations by the government.
These two US events are merely the latest examples of increased activity around the globe with regard to the issue of pay equity. Click here to read more.
(Many thanks to George Avraam and Susan MacMillan for sharing this insight with us.)
Despite the longstanding nature of equal pay and pay equity legislation in Canada, on average, women still earn less than men. The Ontario Government and the Federal Government recently took steps aimed at improving women’s equality in the workforce and addressing the gender pay gap in these jurisdictions.
Click here to download the full report, which includes helpful information on how employers can prepare for Ontario’s upcoming Pay Transparency Act.
Click HERE for our review of the new UK requirements after the first year of reporting.
With all the discussion around California’s salary history ban, it’s easy to forget that some cities have adopted their own regulations. For companies with operations in San Francisco, it is important to be aware of the city’s salary history ordinance.
As efforts to narrow the gender pay gap intensify across the globe, we launch the first article in our new series. Click the photo below to read the article, which provides an overview of the international picture.
The International Response to the Gender Pay Gap
Stay tuned over the coming months for weekly insights highlighting what multinational employers need to know about the gender pay gap.
Yesterday we hosted a dynamic panel featuring four of our favorite European colleagues for a breakfast briefing in Palo Alto. Susan Eandi moderated a lively discussion with Nadège Dallais (France), Bernhard Trappehl (Germany), Fermin Guardiola (Spain) and Nicola James (United Kingdom).
Our colleagues gave guests an inside look at sociopolitical trends driving employment law change in each of their respective countries, as well as sharing important updates related to practical issues employers are currently facing.
In case you missed it, here are a few of the headlines:
Continue Reading Takeaways From Our European Employment Law Breakfast Briefing
On April 9, 2018, the Ninth Circuit issued its decision in Rizo v. Yovino and affirmed that prior salary, alone or in combination with other factors, cannot justify a wage differential between male and female employees. Judge Stephen Reinhardt, who died unexpectedly in late March, authored the ruling. Known as the “Liberal Lion” of the federal judiciary in California, Judge Reinhardt also overturned bans on same-sex marriage and physician-assisted suicide and declared prison overcrowding unconstitutional.
