Why PR pros have to understand the prospective liability for pay equity claims

As the PR market’s variation in between male and female wages continues, comprehending the brand-new federal government policies is more crucial than ever.


Pay equity is not simply a crucial subject in the upcoming governmental election. It is likewise the topic of brand-new guideline. Recently, the United States Equal Employment Opportunity Commission stated that beginning in March 2018, it will gather summary worker income and reward payment information for all companies who utilize more than 100 staffers. Business with less than 100 staff members will likewise be needed to send this information if they are federal specialists or subcontractors.

Inning accordance with the EEOC, this information will “enhance examinations of possible pay discrimination which stays a contributing element to the relentless wage space” in between males and females in comparable positions. The EEOC likewise revealed it will use this pay information to examine grievance of discrimination, focus firm examinations, recognize existing pay variations, and will not reveal information for a particular company. Rather, it will just release bigger aggregated information that “completely safeguards company privacy and staff member privacy.” More details about the modified EEO-1 report, consisting of the brand-new Fact Sheet for Small Business kind, and a concern and response file are readily available on EEOC’s site. Even before the EEOC starts gathering this information, a variety of leading business (consisting of Amazon, American Airlines, Johnson & Johnson, and PepsiCo) have actually willingly signed the White House’ Equal Pay Pledge, by which companies accept examine their pay statics every year in an effort to lower the gender pay space.

2cIt is just fairly just recently that the general public relations market has actually been getting adapted to the brand-new Department of Labor overtime policies that end up being reliable on December 1. Now, nevertheless, there looms a lot more essential source of possible liability to public relations companies with more than 100 workers. It is called pay equity.

Paying ladies less than males for the very same work has actually been prohibited in the United States for more than 50 years because the enactment of the Equal Pay Act of 1963 and Civil Rights Act of 1964. Even before the EEOC’s statement recently, 9 states (consisting of California, Massachusetts, and New York) have actually enacted equivalent pay laws supplying more comprehensive security for existing federal laws. The Massachusetts law, for instance, which enters into result on January 1, 2018, restricts companies from discriminating in the payment of earnings and advantages based upon gender, and particularly, by paying a worker less than another staff member of a various gender for equivalent work. In addition, companies thinking about candidates who will operate in these states might not ask the candidates or their existing or previous companies about the candidates’ settlement history before the company has actually made a composed deal of work, consisting of settlement, to the candidate.

Exceptions to the Massachusetts act’s requirement of equivalent spend for similar work consist of circumstances

where pay is various due to:


  • An authentic system that rewards seniority, which will not be lowered by leave due to pregnancy or secured household and medical leave
  • An authentic benefit system
  • An authentic system that determines profits by amount or quality of production or sales
  • Various geographical places
  • Various requirements in education, training, or experience fairly associated to the task and constant with business need
  • Job-related travel requirements

Even before the EEOC starts the information collection in March 2018, all companies, consisting of public relations companies, can be based on an unequal pay claim based upon gender. Because of this, companies must lower the danger of these claims by proactively examining overall yearly payment to males and females in comparable positions to:

Determine if there are pay variations;

2bIdentify whether such distinctions are the outcome of genuine elements such as seniority, benefit, quality or quantity of work; and if so,

Ensure that such non-discriminatory elements are well recorded.

Management and HR experts at public relations companies must carry out the procedure with skilled legal counsel to make sure that lawyer customer advantage is preserved. Offered the increased attention that states and the federal government are dedicating to get rid of the gender pay space, a fortunate evaluation and analysis will assist recognize and fix possible problems. It will likewise decrease prospective claims.