If you're the Pilot In Command of compensation or EEO compliance, pay discrimination is on your radar. But are YOU on the radar of the EEOC?
You might think that if no claim of pay discrimination has been filed, you're in the clear. Historically, the EEOC typically launched an investigation only after a complaint of pay discrimination. But under a new pilot project, the EEOC is now engaging in proactive audits of employer pay practices.
Earlier this year, the National Equal Pay Enforcement Task Force recommended that the EEOC use its authority under the Equal Pay Act to begin agency-driven directed investigations into employer pay practices. The result of this recommendation is the Equal Pay Act Directed Investigation Pilot Project.
Under the pilot project, the EEOC isn't waiting for complaints of discrimination to start an investigation. The Agency is targeting employers for investigation and beginning a compensation audit of employer pay practices on its own.
Even though the EEOC has had the authority to engage in these kinds of investigations for years, they've focused on complaint-driven investigations. That focus could change in the future, depending on the outcome of the Directed Investigation Pilot Project.
Right now, three district offices - New York, Chicago and Phoenix - are actively auditing employers under the pilot project.
Here's how the investigation works. The audit starts with a meeting between the EEOC and the employer. At this meeting, the EEOC gathers information about the employer's compensation practices - background information on the pay system(s) used, compensation and review methods, retention and management of compensation data, etc.
After this initial meeting, the EEOC constructs discovery and data requests specific to the employer, and the employer responds with its data and document production.
The EEOC then reviews the data and document production, and performs the audit. If the audit reveals violations, the EEOC then determines what enforcement measures (if any) will be pursued against the employer.
A lot of the details are still under wraps. We don't know how employers are selected for a directed investigation. We don't know what methodology the EEOC is using for the audit. We don't know the kinds of enforcement actions the EEOC would be prepared to take if disparities are found.
What we do know is that as of June, only a handful of audits have been performed. We also know that if the project is successful, the EEOC may expand it nationwide. Unfortunately, we don't know how the Agency is defining "success."
I've heard that the initial meetings that have been done under the pilot project have been relaxed and low-key. In a recent interview, Former EEOC Vice Chair Leslie Silverman said that based on what she's heard, the tone of the pilot project meetings have been cooperative and non-adversarial.
While the pilot project skies seem pretty friendly, you still need to check your 6 and make sure you're Code 1 on internal pay equity.
Stephanie R. Thomas is an economic and statistical consultant specializing in EEO issues and employment litigation risk management. Since 1999, she's been working with businesses and government agencies providing expert quantitative analysis. Stephanie's articles on examining compensation systems for internal equity have appeared in professional journals and she has appeared on NPR to discuss the gender wage gap. Stephanie is the founder of Thomas Econometrics Inc. and is the host of The Proactive Employer. Follow her on Twitter at proactivemployr.
Comments