Equal Pay Audits

State and federal laws require that employees provide equal pay to workers regardless of gender. To prevent claims of gender-based wage gaps, some companies conduct internal audits to prevent and avoid situations and disparities which could give rise to wage gap claims. In recent years, there have been numerous laws set into action regarding employers’ pay practices. Employers are now required to carry out a pay audit and publish the results, ensuring there is no discrimination or discrepancy between employee wages.

The Equal Employment Opportunity Commission (EEOC) requires employers with more than 100 employees to conduct an internal pay audit to ensure there is no unlawful pay disparity and to protect themselves from any future violations. In addition, the Equal Pay Act (EPA) requires that men and women within the same workplace be compensated with equal pay if they are performing the same duties. This renewed focus on pay equality creates both challenges and opportunities for employers when it comes to achieving fair pay practices and minimizing risk of litigation.

What Must an Equal Pay Audit Include?

Before conducting an equal pay audit, it is imperative that the employer makes sure the audit is conducted under privilege. If you would like to learn more about what this means, please contact Janovsky & Associates. Let’s now look at what an internal equal pay audit must include:

● All relevant gender pay information for the employees within the scope of the audit
● Identification of any discrepancies in pay (along with the specific reasons) between male and female employees
● The reasons for any potential pay inequality as outlined by the audit
● The employer’s plan to prevent any equal pay breaches from taking place in the future

Exceptions to Equal Pay Audits

There are a handful of exceptions to mandatory equal pay audits, including:

● If an audit has been completed by the respondent within the last three years, meeting the outlined requirements
● If action is necessary to avoid equal pay breaches from occurring
● If there is no reason to believe there are breaches in pay
● If the disadvantages of an audit would outweigh any benefits

These are just a handful of the reasons an equal pay audit does not need to be completed. If you have any questions about the above or would like to learn more about pay audit exemptions, conducting an equal pay audit, or would like to set up a consultation about how to proceed, and how to minimize the risk of an equal pay claim, then please do not hesitate to contact the DFW law office of Attorney Janovsky. Attorney Janovsky has years of experience helping employers in both Texas and California understand their obligations regarding equal pay and is prepared to do the same for you. Equal pay is an important subject in our country right now, and it is imperative you understand what is expected of you as a business owner.

Legal Disclaimer: The information provided on this website is not legal advice, and does not establish an attorney-client relationship. The information is provided for informational purposes only.