There are a lot of pay transparency laws employers are trying to comply with in the U.S. and globally.
· Here in the U.S., we have compliance requirements in California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, New York, Rhode Island, and Washington.
· States considering pay transparency include Alaska, District of Columbia, Kentucky, Maine, Massachusetts, Michigan, Missouri, Montana, New Jersey, Oregon, South Dakata, Vermont, Virginia, and West Virginia.
· And then we have local pay transparency laws in New Jersey (Jersey City), New York (Ithaca), New York (New York City), New York (Westchester County), Ohio (Cincinnati), and Ohio (Toledo). (Source: Rippling)
Per the World Economic Forum, among the 38 OECD countries, over half require private employers to analyze and report gender pay gaps. And no two countries’ systems of reporting pay are the same. Review the image associated with this post for details.
Compensation complexity always existed. It has increased substantially in the last few years.
The requirements in the U.S. vary by state and local jurisdictions.
Globally, it’s crazy how many details must be tracked and reported on.
Consistency in compliance requirements does not exist. Anywhere.
Most employers aren’t up-to-date and in full compliance.
Some attorneys are delighted at the opportunity to find those employers and point out their non-compliance. The financial penalties and impact on company reputations will be enough to cause some changes in attitudes at the C-suite level.
The bigger the penalties that employers experience the more likely HR will get buy-in to spend time and money on getting their pay inequities solved, job architecture projects funded, and pay decision making processes standardized.
So, for those employers who aren’t being proactive and think this focus on pay transparency and gender pay gap reporting is a PITA, FAFO.
And when you are ready to be proactive, let’s talk. My team and I are looking for more projects to contribute to.
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