Employers faced with navigating the wave of new and potential legislation directed at remediating pay equity issues would be wise to proactively to address the issue. While it may seem obvious, none of the applicable laws prohibit pay differentials outright; instead, all laws prohibit pay differentials only when they are attributable to impermissible factors. A properly structured pay equity audit can serve to identify only those differentials that are potentially unlawful, and tacitly approve of those differentials that are permissible.

Each employer may have different goals for an audit, different ideas concerning the appropriate focus of the audit, and different resources to be contributed to the audit, all of which prevent a “one size fits all” approach to describing an audit. Nevertheless, five features will be integral across all efforts.

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