50 State Equal Pay Reference Guide - 2023 Q1 Edition

Life Cycle of an Equal Pay Analysis Is your organization considering undertaking a proactive pay analysis? Changes to state and federal laws in the US and globally make undertaking such an analysis a wise decision and a key risk mitigation priority for your organization. Initial Contact: Identify Goals and Protect the Privilege We will kick off the analysis by first identifying your organization’s key goals and objectives, including whether to coordinate the timing of the analysis with any typical annual review process. We will also identify the appropriate and right-sized internal and external resources necessary to conduct the analysis. Before the substantive components of the project begins, our Pay Equity attorneys will work with you to implement attorney-client privilege protocols to safeguard the analysis to the maximum extent possible. Team Kick-Off Call: Identify Scope and Resources During our first discussion with the audit, we will define the scope of the analysis, including identifying the workforce and the components of pay under review. In order to better understand your organization, we will ask for information about compensation structure and pay philosophy and discuss the drivers of employee compensation. Together, we will determine the most appropriate way to group employees for the statistical analysis and identify the job-related factors that are relevant to employee pay. Seyfarth’s Pay Equity team can guide you through this process by developing an analysis that evaluates the key components of pay relevant to your organization. We will partner with you to model the compensation practices for your workforce, or you may choose to target a subset of those employees. The analysis will be designed to align with your organization’s objectives, identify and address unexplained differences in pay and ensure that your organization’s practices align with stated business policies and priorities. Together, we will guide you through the life cycle of a pay analysis: 1 2 Identify Litigation Risks and Possible Mitigation Strategies By comparing the organization’s compensation structure with industry-specific litigation trends, we can often identify potential drivers of litigation risk and mitigation strategies. Even small changes to policies or systems can significantly impact the defense of an equal pay lawsuit. 3 3 | 50 STATE EQUAL PAY REFERENCE GUIDE AS OF MARCH 2023