Addressing the Pay Gap: A Guide to Equal Pay Audits
Understanding the Gender Pay Gap: The Importance of Equal Pay AuditsIs there a gender pay gap in your organization that requires attention? While most employers do not intentionally engage in gender-based pay disparities, discrepancies can still emerge. This can particularly occur when employees join at different times with varying negotiated compensation and benefits, or due to unintended consequences of bonus policies.
Undertaking a thorough equal pay audit in accordance with the Massachusetts Equal Pay Act can shield employers from wage discrimination claims. While this advantage is not explicitly stated in federal law, conducting an audit can still yield significant benefits. What is an Equal Pay Audit?An equal pay audit, as defined by Massachusetts law, is a diligent self-assessment of compensation practices and pay fairness. The primary objective of the audit is to determine if the organization is providing equitable compensation to both men and women for similar job roles.
How Can the Audit Identify Wage Gaps?To identify wage disparities, examine the compensation of employees whose roles require substantially similar skills, effort, and responsibility, performed under comparable working conditions. Exact job titles need not match. Evaluate the entire compensation package, encompassing base salary, bonuses, and incentive payments. It's important to also scrutinize hiring practices, considering that in Massachusetts, it is unlawful to inquire about a candidate's salary history, as this can perpetuate wage gaps.
If discrepancies in pay for similar roles are discovered, assess whether these variations can be justified. If not, take steps to make "reasonable progress" in resolving these issues, which will safeguard your organization under state law. Why Should You Conduct an Equal Pay Audit?When conducted correctly, an equal pay audit can establish a robust defense against claims under Massachusetts equal pay regulations, providing protection against liability even if an employee can demonstrate a pay equity violation. While this may not serve as a defense for federal claims or other statutes, it can significantly bolster your position in such cases.
Who Should Perform the Equal Pay Audit?While there is no strict requirement to engage an attorney or an external firm, it is a prudent choice. An external perspective can offer an unbiased assessment of legal standards and fresh insights into your business practices. Furthermore, external experts can provide valuable testimony during litigation if necessary. Collaborating with an employment lawyer can provide additional benefits by identifying and proactively managing other employment law risks.
What If an Employee Raises Concerns About Pay Inequity?In the event an employee voices concerns during an audit or separately, it is imperative to consult with an attorney immediately for legal guidance. Equal pay laws explicitly prohibit retaliation, and no punitive actions should be taken against employees for discussing compensation matters amongst themselves. Additionally, these laws affirm the right of employees to discuss their compensation with one another, thereby promoting transparency in the workplace.
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Meet Our Employment Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with severance and non compete review and negotiation, wage and hour, discrimination and retaliation disputes, workplace sexual harassment situations, and advice about employment law generally.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with wage and hour disputes, employment discrimination, harassment and retaliation claims, review and negotiation of severance and non compete agreements, and advice to both employees and employers about navigating complex employment situations.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients with review and negotiation of severance and non compete agreements, wage and hour disputes, discrimination, harassment and retaliation claims, and advice to small business owners about employment law and other business matters.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients on the employee and employer side with all varieties of employment law issues, including employment discrimination, harassment, retaliation, and wage and hour issues, litigation in MCAD and state and federal courts, and advising employers about employment policies and practices.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with wage and hour, discrimination, harassment and retaliation disputes, review and negotiation of severance agreements, and litigation in MCAD and state and federal courts on employment related issues.
How We Can Help
Our experienced team is ready to guide you through the equal pay audit process, ensuring compliance with Massachusetts law, identifying potential wage gaps, and implementing fair pay practices to protect your business and employees. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
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