Remember that the bona fide factors include: a seniority system, merit system, system that measures earnings by quantity or quality of production, as well as workplace location, travel, education, training, and experience. The regulations currently have an extremely long definition for “system”—“a devised coherent, consistent, verifiable and reasonable method that was in use at the time of the alleged violation to identify, measure and apply appropriate variables in an orderly, logical and effective manner.” The regulations go on to provide an even more specific definition of what qualifies as a “seniority system,” a “merit system,” and a “system that measures earnings by quantity or quality of production.” Senate Bill 123 clarifies these convoluted definitions by shortening the definition of “system” to mean “a consistent and verifiable method in use at the time that a violation is alleged.”
Different Compensation for Modified Work
The fix bill also clarifies that it is not a violation of Oregon’s Equal Pay Act for an employer to pay a different level of compensation to an employee who is performing modified work: (1) because of a covered workers’ compensation injury; or (2) requested temporarily because of a medical condition and authorized by a licensed medical professional.
Pay Equity Analysis
The pay equity analysis changes in the bill clarify that an employer’s analysis does not have to specifically relate to the protected class asserted by the plaintiff. Rather, the analysis must include a review of practices designed to eliminate unlawful wage differentials between all employees. Further, after completing the analysis, the employer must make reasonable and substantial progress towards eliminating wage differentials for its employees, not just wage differentials for the protected class asserted by the plaintiff. This confirms that employers do not have to identify the protected class status of its employees in order to qualify for the safe harbor associated with conducting a pay equity analysis.
For questions on pay equity compliance or your pay equity analysis, contact Nicole Elgin at firstname.lastname@example.org or Andrew Schpak at email@example.com. Barran Liebman’s Annual Employment, Labor, Benefits, and Higher Education Law Seminar on October 10th will also cover a variety of employment hot topics, including pay equity. Please click here for registration details.
Electronic Alerts are written by Barran Liebman attorneys for their clients and friends. Alerts are not intended as legal advice, but as employment law, labor law, and employee benefits announcements. If this has been forwarded to you, and you would like to begin receiving Electronic Alerts directly, please email or call Traci Ray at 503-276-2115. Copyright ©2019 by Barran Liebman LLP.
Las Alertas electrónicas son escritas por abogados de Barran Liebman para sus clientes y amigos. Las Alertas no son proveídas como asesoramiento legal, sino solo como anuncios de leyes de empleo, leyes laborales y beneficios de empleo. Si esto ha sido remetido a usted y quisieras empezar a recibir las Alertas directamente, por favor mándanos un correo electrónico o llama a Traci Ray al 503-276-2115. Derechos de autor ©2019 por Barran Liebman LLP.