The gender pay gap has rapidly surfaced as a key concern for American companies. The California Fair Pay Act, which went into effect January 1st, is one of the most aggressive laws ever implemented that aims to narrow the gender pay gap. Think it will only affect California? Think again. Just because your business is not in California, doesn’t mean you’re exempt from the impact of that law. That said, compliance is only the bare minimum of what you should aim to accomplish.

1. The California Fair Pay Act:
Ripple Effects on Your Business
Mykkah Herner, MA, CCP
Modern Compensation Evangelist
Angela Ulman, CCP
Compensation Professional

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15,000 Positions 3500 Customers 11 Countries
250 Compensable Factors
54Million Salary Profiles

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Agenda
The California Fair Pay Act
o Why does it matter to me?
o Compliance
o Other Pay Equity Laws
Going beyond mere compliance
What should I do first?

4. Legal Disclaimer: this is intended to be
informational, not to serve as legal advice.
If you think you have a potential pay
discrimination issue, seek out a lawyer.

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Why should the California
Fair Pay Act matter to you?

6. As California Goes…
…so goes the nation.

7. My company is in Mississippi!
But… I do have that one employee in California.

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What do you need to know
in order to comply with the
California Fair Pay Act?

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3 main changes
Definition Secrecy Burden of
Proof

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Deeper definition of Fair Pay
Same work requiring same skill, effort, responsibilities,
and working conditions
Across all locations

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Pay Secrecy is unacceptable
Communicate their own pay
Talk about other people’s pay *
Inquire about other people’s pay *
No imperative in the law to disclose anything

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Increased Burden of Proof
of pay difference between men and women
must be demonstrated to stem from one or
combination of
• Merit Process
• Seniority Process
• Production quality or quantity
Process
• Bona fide factor other than sex

13. Implications of 100 Proof
• Clear & documented process for
determining hiring rates
• Clear & documented process for
allocating increases
• Rationale for differences must be
captured

14. This isn’t the time to give up…
Image from http://www.havingtime.com/10-reasons-you-should-never-give-up/
… on Pay for Performance!

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Increased Burden - bonus proof
Keep your records for 3 years now!

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What other pay equity laws
should you be aware of?

17. Turns out 48/50 States have some version
of a pay equity law on the books

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New York’s Equity Law 1/19/2016
• Definition: similar work under similar conditions;
rationale for differential pay updated to “bona fide factor
other than sex, such as education training or experience”
• Secrecy: NY added the right to
inquire about, disclose, and discuss
wages
• Proof: burden of proof is on the
employer, and the penalty for
getting it wrong is big

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Canada has it going on
Employer has burden of proof
• Manitoba
• New Brunswick
• Nova Scotia
• Prince Edward Island
• Ontario
• Quebec
Policy framework for negotiating pay
• Saskatchewan
• Newfoundland
• British Columbia

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Sneak peak into proposed
reporting
• *Proposed* by EEOC
• 100+ EE employers
• Adds 12 pay bands to existing EEO-1 report
• Report #EEs on one grid, #Hours on the other
• First report due 9/30/2017

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Going beyond mere
compliance

22. It’s about
way more
than
compliance

23. Let’s dig deeper…
http://www.payscale.com/data-packages/gender-pay-gap

24. Why is the difference so big in the
uncontrolled gap?
http://www.payscale.com/data-packages/gender-pay-gap

25. 5 factors that
affect the gender
wage gap:
http://www.payscale.com/data-packages/gender-pay-gap
• Job Type
• Job Level
• Compensable Factors
• Marriage & Family
• Unconscious Bias

26. www.payscale.com
Go beyond compliance with fair pay
• Similar work by similar people*
• Leadership roles
• STEM jobs
• Workplace currency & Systematic Bias
• Go beyond 2 genders
• Aiming for fairness now prepares you for
future legislation

27. Top companies report gender pay data
Source: http://www.informationisbeautiful.net/visualizations/diversity-in-tech/ Dec 2014

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Paying fairly is brag worthy
• External branding
• Internal branding or EVP

30. Millennials aren’t just employees

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It’s a VUCA world

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Paying Fairly leads to business results
• Make a business case
• It’s beyond nice, it’s necessary!
• Oh the millennials
• Companies that don’t change will fail

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Where do you start?

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• Have a compensation plan
• Conduct an audit now
• Review and update all documentation
• Train executives, managers, and employees
• Go *far* beyond compliance

35. PayScale Delivers Where Other Compensation Providers Fall Short
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most detailed data from over 54 million salary profiles. More than 3500
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and motivate their people.
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Mykkah Herner, MA, CCP
Modern Compensation Evangelist
Angela Ulman, CCP
Compensation Professional
www.payscale.com