Tag Archives: gender pay gap

California Governor Splits the Difference on Equal Pay Follow-On Laws

For the second time in as many years, California Governor Jerry Brown has vetoed “wage shaming” legislation that would have required employers with 500 or more employees to report gender-related pay gap statistics to the California Secretary of State on an annual basis beginning in 2019 for publication on a public website. Assembly Bill 1209 (“AB 1209”), which we discussed at length in last month’s Act Now advisory, passed the Legislature despite widespread criticism from employers and commerce groups.  This criticism included concerns that publication of statistical differences in the mean and median salaries of male and female employees without accounting for legitimate factors such as seniority, education, experience, and productivity could give a misleading impression that an employer had violated the law.  Opponents also decried the burden the bill would place on employers to do data collection and warned that it would lead to additional litigation.  In vetoing the measure, Governor Brown noted the “ambiguous wording” of the bill and stated he was “worried that this ambiguity could be exploited to encourage more litigation than pay equity.”

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Gender pay gap – draft guidance is published

With gender pay gap reporting obligations almost upon us, the Government Equalities Office and ACAS this week published their draft guidance (Guidance). The Guidance is a step-by-step guide for employers on the types of data they need to publish and how they should calculate gender pay gaps prior to publication.

The first snapshot date is 5 April 2017 (which is earlier than initially indicated). Prior to this date relevant employers (i.e. those with 250 or more employees) should become familiar with the Guidance and implement a few trial calculations in readiness.

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Mind the ‘gender pay’ gap

Mandatory gender pay reporting has been on the agenda for employment lawyers for some time. Originally foreshadowed in the Equality Act 2010, finally draft regulations are now entering the consultation phase and UK employers are gearing up for their introduction later this year.

In general employers are bound to be concerned. 2015 statistical information released by the Office of National Statistics shows that the gender gap is still at 9.4% for full-time employees on a national level.   A sector by sector analysis shows that jobs which are traditionally perceived as attracting a greater proportion of females, such as nursing and midwifery professionals, have the narrowest gender pay gap (at -0.2%), but that occupations where women are generally under-represented, such as financial services managers and directors, typically have a much higher gender pay gap (at 34.9%).

 

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The Magnificent 7- statutory employment changes to look out for in 2016

The start of a new year is always a time for reflection and contemplation of the next 365 days (or 366 days for us in 2016). This represents a good time for those involved in employment law and HR to take stock of some of the key changes to employment expected over the next 12 months. Here is our (non-comprehensive) list of the bigger developments to look out for.

1. The National Living Wage

In July 2015, George Osborne shocked some when he announced the introduction of a National Living Wage in his Budget. As of 1 April 2016, this premium hourly rate will come into effect meaning employers will have to pay their workers aged 25 and over at least £7.20 per hour. Part of the reason the Government opted to take this “top up” approach was the belief that too many employers were only paying staff the minimum wage in the knowledge that income would in effect be supplemented by the state through Income Support, Working Tax Credits, Housing Benefit, etc. The idea of a wage “premium”, as opposed to a simple increase to the minimum wage rates, is to reinforce the notion that employers will now be expected to take greater responsibility in ensuring their workforces are remunerated to allow for a minimum standard of living. 

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