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SHRM-SCP: Best Practices for HR Professionals to Ensure Compliance with the Equal Pay Act

Learn how to ensure compliance with the Equal Pay Act by reviewing salaries based on factors other than gender. Discover best practices for HR professionals to maintain fair pay and avoid discrimination in the workplace.

Table of Contents

Question

Which action best ensures compliance under the Equal Pay Act?

Answer

Reviewing salaries for factors other than gender. Under the Equal Pay Act, gender cannot be a factor when determining salaries. Therefore, organizations must base salaries on factors other than gender.

Explanation

To ensure compliance with the Equal Pay Act, the best action is to review salaries based on factors other than gender. The Equal Pay Act, passed in 1963, prohibits pay discrimination based on sex for employees performing substantially equal work in the same establishment.

Under this law, employers cannot determine salaries based on an employee’s gender. Instead, they must use other factors such as:

  1. Job responsibilities and duties
  2. Level of experience and tenure
  3. Education and qualifications
  4. Performance and merit
  5. Location and cost of living

To maintain compliance, HR professionals should regularly conduct pay equity audits. These audits involve analyzing salary data to identify and address any discrepancies that may be attributed to gender discrimination. By examining salaries through the lens of relevant, non-gender-related factors, organizations can ensure they are providing fair compensation to all employees.

Additionally, HR professionals should establish clear pay structures and guidelines that are based on objective criteria. This helps to minimize the risk of pay disparities and provides a framework for consistent and equitable compensation decisions.

It is crucial for organizations to prioritize pay equity not only to comply with the Equal Pay Act but also to foster a fair and inclusive workplace culture. By proactively reviewing salaries and ensuring they are based on factors other than gender, HR professionals can help their organizations avoid legal issues and maintain a positive reputation as an employer that values diversity and equal opportunity.

SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.