Compliance Stuff

A cautionary tale for employers.  EDITOR’S NOTE: Our  Affirmative Action Alert  blog has been re-titled  EEO Compliance Dispatch .   Many companies proactively analyze employee compensation to ensure that any disparities based on race and sex can be explained. This practice is advisable for many reasons: To eliminate or reduce potential liability for pay discrimination by identifying and correcting unexplained pay differentials. To increase employee morale and trust in the organization. To demonstrate accountability to shareholders and others. To develop robust compensation strategies and programs. Pay analyses that are prepared by or for counsel for the purpose of obtaining legal advice are generally covered by the attorney-client privilege. This privilege may be waived, however, if the confidentiality of the communication is not maintained by the client. One drawback to conducting a preventive pay equity analysis – even with the involvement of an atto...

Employers reclassifying employees as nonexempt due to this year’s overtime rule should clearly explain the basis for the change to minimize morale problems resulting from the change. Employers should communicate that reclassification is not a reflection of the quality of the employees’ work or their contributions to the organization, said Keith Kopplin, an attorney with Ogletree Deakins in Milwaukee. “This is simply something required by virtue of a change in the law,” he said. Organizations also could reference the fairness of being paid by the hour and being entitled to overtime, he added. If possible, employers should find ways to minimize the impact of other changes required by reclassification, Kopplin said. For example, employers could use exception timekeeping for employees who work fixed schedules so they are only required to indicate when they deviate from their schedule, instead of recording the start and end of every workday and every unpaid break. Employers should also be ...