The Federal Government started it…California has continued it…Illinois is planning it…Colorado is considering it…and others will follow their lead. Be Proactive. Find out more about OutSolve's Compensation Risk Analysis and get started today.
With both Federal and state agencies prioritizing pay equity, it is critical for federal contractors to have the ability to view potential areas of vulnerability that will lead them to compensation equity and compliance. This Risk Analysis is a compensation report designed to provide clients a gateway to viewing potential pay equity liabilities across multiple tiers by leveraging comparisons by job title, job group, and EEO category as they are linked to the data that is collected by the various agencies seeking to enforce equitable pay.
The EEO-1 Component 2 report completed in 2019 was the brainchild of the Obama administration. Then Trump’s EEOC canceled it for good. Or did they? One of the major champions of EEO-1 Component 2 was Jenny Yang – a former ranking official in Obama’s EEOC and new Director of OFCCP. Her actions to date reveal a shift back to Obama-era policy, and Component 2 could easily see a return in some form. Meanwhile, states have taken matters into their own hands. California has mandated a variant of Component 2 that is required RIGHT NOW and Illinois is preparing a similar report.
Most companies have well-intentioned compensation practices, yet compensation disparities still exist. Pay problems may arise through merger and acquisition activity, differences in starting pay, inconsistent pay practices, or other factors with unidentified triggers that can be uncovered from the pay data reported to federal or state agencies. Further, this information may be more widely available from FOIA requests. The fact is, these reports not only identify real problem areas; but can also result in false positives during review or enforcement.
Compensation issues are not quickly and easily addressed. Now is the time to review your actual pay practices and employee compensation. Often, simply the way the data is presented may be the problem while in other instances there may exist a real disparity that requires investigation. Consider a proactive pay assessment to minimize potential risk prior to submitting your pay data to any government agency.
Outsolve's comprehensive package includes a risk assessment of pay reporting data. This is a low-cost, preemptive analysis designed specifically to uncover potential pay data reporting concerns so that these can be minimized, restructured, or addressed BEFORE submitted to any government agency.