Employment Law Action Item: Consider A Pay Equity Audit
Especially for growing businesses, claims of pay inequities could do substantial economic and reputational harm. If structured with risk management in mind, pay equity audits are instrumental in reducing long-term legal and reputational costs. Under relevant federal laws, employers’ efforts to remediate pay disparities may limit liability based on bad faith or intentional violations. In certain states, safe harbor protection is available for employers that take affirmative steps to reduce or eliminate pay inequities.
In light of the priorities of the incoming Department of Labor administration, HBL recommends a proactive internal pay equity audit. Because it is difficult to predict the results of pay equity audits, confidentiality protection is important for risk management. As outside counsel, we can support you in developing a confidential communications strategy around the attorney-client privilege. To schedule a consultation, call 470-571-1007.