Pay equity is a hot topic these days, as reports of gender pay
gaps across the country—including within some of the most
recognized companies in the world—have caught the attention
of state and local government investigators, the Equal Employment
Opportunity Commission, the media, shareholder activists, the
C-suite and class-action attorneys looking for "the next big
thing." In response, many companies are choosing to
proactively conduct pay audits to try to identify and remedy pay
disparities. In a few jurisdictions, in fact, carrying out such a
self-audit before a lawsuit is filed will provide a complete
defense to a pay equity lawsuit under state law.
Pay audits can be very effective tools in the quest for pay
equity, provided they are done right. Here is a seven-step plan for
conducting a successful pay audit.
