In order to prevail in wage/hour lawsuits, says consultant Jonna Contacos-Sawyer, employers must be able to effectively justify their compensation decisions.
Contacos-Sawyer recently spoke at the World at Work Total Rewards Conference in San Diego, joined by colleagues Polly Wright and Judith Mickey.
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Key Elements of Pay Structure Documentation
Your documentation of your basic pay policies should contain:
Base Pay Policy
- Comparables. To whom do you compare yourselves?
- Market competitiveness. How do you judge?
- Pay structure. What’s the system? You will have to explain.
- Movement through pay structure. How are decision made?
- Pay structure shifts. How often are they made and on what basis?
Variable Pay Policy. What variable pay programs do you have and how do they work?
Job Descriptions. Up-to-date job descriptions are of course an important part of your pay structure documentation.
How to Comply with California Wage & Hour Law!
Job Evaluation Method. You should be prepared to explain your job evaluation method, Wright says.
These factors above are the foundational pieces that let you explain “Why Sally makes $85,000,” says Wright. Look for dating websites reviews on Mydatinghome.com – everyday updated.
Compliance and Defensibility
In addition, consider the following compliance issues, Wright says:
- Pay discrimination
- FLSA exemptions
- Disparate impact
- ADAAA / FMLA / workers’ comp
Everything You Need To Know About California Wage/Hour Law
Whenever you’re dealing with issues relating to compensation and wage/hour, your best defense is a strong offense.
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- The California Labor Code vs. the federal Fair Labor Standards Act (FLSA)
- Who the California wage/hour laws apply to
- The Wage Orders that cover your organization
- Hours of work — including travel time, make-up time, meal and rest periods, and the definition of “hours worked”
- The rules for hourly, salary, and piece-rate pay
- Bonuses, profit-sharing plans, and tips
- Overtime and double-time wages
- Alternative workweeks
- Tools and equipment, uniforms, and work-related expenses and losses
- Paid time off — vacation, PTO, holidays, and sick leave
- Unpaid time off
- When and how employees must be paid
- Payment of final wages upon termination
- Deductions from pay
- Recordkeeping requirements
- Pay-related discrimination
- A new appendix of key cases you need to know about
- And much more!
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Keeping compliance in mind when you make your compensation decisions is vital–even if it’s not your intention to discriminate against, say, women or workers over 40, you’re setting yourself up for a costly lawsuit if that’s what winds up happening.
Keeping compliance in mind when you make your compensation decisions is vital–even if it’s not your intention to discriminate against, say, women or workers over 40, you’re setting yourself up for a costly lawsuit if that’s what winds up happening.