107 Woman Hands On Keyboard

Women make up almost half of the workforce. They are the equal, if not main, breadwinner in four out of ten families. They also receive more college and graduate degrees than men. However, it is still evident today that women only earn about 79% of what men earn. (Source: iwpr.org)

To some, it may seem as though the impact of the Equal Pay Act of 1963, which made it illegal to pay women lower wages because of gender, may have weakened over time. According to the WAGE Project, Over her working life, a woman will earn $1 million less than a man simply because she is a woman.

With growing controversy centered on closing the pay gap between men and women, its crucial to make sure that employers are maintaining fairness when setting pay for their employees.

As a first step, employers can review their pay practices to find any imbalances. The National Committee on Pay Equity recommends that companies audit themselves to see how diverse and balanced their practices truly are:

  • Are diverse applicants included in the recruiting process?
  • Does your compensation system lead to internal pay equity?
  • Is your employee pay competitive with industry standards?
  • How does pay compare for positions with similar duties or qualifications within the company?
  • For new employees, are men more often able to negotiate higher starting salaries than women or minorities? 
  • How are raises or opportunities for promotion earned?

As a general rule, pay should be set based on factors such as years of experience, education, job performance, the number of employees managed, professional accreditations, industry, and the job at hand. Factors such as gender, age, race, nationality, or disability (among other protected areas) should not be considered when setting an employee’s rate of pay.

The Equal Employment Opportunity Commission (EEOC) recently announced a proposal to annually collect summary pay data by gender, race, and ethnicity from businesses with 100 or more employees in order to evaluate and advance equal pay.

This additional scrutiny from the EEOC on equal pay, plus the Department of Labors impending reforms to overtime pay exemptions, mean its more important than ever for companies to assess their compensation practices and make corrections where needed.

Nextep’s HR department can be a valuable resource in those assessments, performing salary assessments with market data, creating job descriptions, and auditing positions to see whether they would be exempt or nonexempt from overtime pay.

For human resource guidance at your company on pay practices, please contact Nextep’s HR team.

Also on Nextep

Did you know partnering with a professional employer organization (PEO) can lower your company’s risk?  There are plenty of ways a PEO can take the burden of compliance off your plate to focus on company goals, attracting top talent, and being an employer of choice among competitors.  Here are some notable benefits of partnering with […]
Read more
After multiple delays, Texas officially released its new, increased SUTA rates, creating additional tax payments for many companies. While SUTA rate notices typically occur at the end of each year, many were delayed due to COVID-19. With unprecedented unemployment claims, state unemployment funds were depleted quickly. This rise in unemployment also affected the state SUTA […]
Read more
Minimum wages across many cities and a handful of states will increase on July 1, 2021. As a reminder, when state law differs from federal law, employers must use the one that benefits the employee the most. For example, if a state’s minimum wage is higher than the $7.25 federal minimum wage, it must be […]
Read more
There are many new or updated state laws or employers that will go into effect on July 1, 2021. If your state has an update, you’ll find it below. As with any other regulation, laws are subject to last-minute changes, visit the Department of Labor online for more info. You can also find minimum wage […]
Read more
Under the OSHA Act, employers are responsible for providing a safe work environment, free from hazards that can cause serious harm. On June 10, 2021, the Department of Labor (DOL) along with the Occupational Safety and Health Administration (OSHA) posted new guidance to protect at-risk and unvaccinated employees from COVID-19 in the workplace.  Requirements Part […]
Read more
Tax season will be here soon! Nextep will make W-2s available online and send them directly to employee homes no later than January 31, 2021.  Here’s how you can prepare for the upcoming tax season.  Get Organized Take a look at last year’s tax return and make a note of any forms or technology you used […]
Read more
Along with the new year comes new minimum wages for several states on January 1, 2021. As a reminder, when state law differs from federal law, employers must use the one that benefits the employee the most. In this case, the state minimum wages are higher than the $7.25 federal minimum wage; therefore, the state’s […]
Read more
It’s important to know about upcoming changes to tax laws and Nextep is here to make sense of them all and help you prepare for next year’s budget. Here are the changes at a glance: Social Security wage base: First $142,800 of wages in 2021 (Was $137,700) FICA – Social Security (OASDI): 6.2%, up to […]
Read more
We recently reported that President Trump signed an executive order and three memoranda for COVID relief. With no interference thus far from Congress, those orders are scheduled to become active September 1.  One of the memoranda we are most frequently asked about is the “payroll tax holiday.” This provision gives employers the option to let employees […]
Read more
Please visit our COVID-19 resources page with more information for business owners and employees. Updates from the U.S. Department of Treasury and SBA. On June 10, 2020, the U.S. Department of Treasury and Small Business Administration (SBA) released additional guidance to provide clarity on the recently passed Paycheck Protection Program Flexibility Act (PPPFA). Here are […]
Read more
On June 5, 2020, the president signed H.R. 7010, the Paycheck Protection Program Flexibility Act, into law. This law clarifies terms of the PPP loan, eligibility, and loan forgiveness. Highlights include: Expanded repayment period There is now an expanded, five-year repayment period for the PPP loan for those who did not receive loan forgiveness, an […]
Read more
Please visit our COVID-19 resources page with more information for business owners and employees. Updates from the SBA and Department of Treasury On May 22, the Small Business Administration (SBA) and Department of Treasury released two interim final rules for loan forgiveness under the Paycheck Protection Program (PPP). While they clarified parts of the loan forgiveness application, […]
Read more

Download Our App