Evaluate and Correct Pay Disparities Checklist
Author: XpertHR Editorial Team
When to Use
Pay equity continues to be a top concern for employers of all sizes. As more employers adopt diversity, equity and inclusion goals as part of their organizational mission, ensuring that employee compensation does not perpetuate inequality along the lines of race, gender or other protected characteristics is a critical step toward realizing those goals. At the same time, a rapidly growing number of state and local laws intended to reduce pay disparities between similarly situated employees complicates the task and increases the risk of missteps. Failing to identify and correct pay inequities can lead to lawsuits, monetary penalties, increased turnover, low employee morale and other consequences.
Therefore, employers that want to attract and retain top candidates - in addition to avoiding legal liability - would be well served by focusing on pay equity. This checklist details steps to identify applicable laws, recognize and correct pay disparities and implement best practices to ensure fair compensation for all employees. Employers do not have to complete the following steps in sequential order.