These are genuine concerns. But the pandemic also presents an opportunity for companies to differentiate themselves on an issue that is increasingly important to building a culture that attracts and retains the best talent. It's also critical to avoid the ever-increasing legal risks of ignoring pay equity in an environment where regulators have gotten tougher with their enforcement actions and private litigation is on the rise.
As companies lay off workers, they could change their pay picture in a way that leaves them with a less equitable workplace and vulnerable to costly enforcement actions. Depending on the pay and identity of workers retained versus those let go, disparities may emerge and then grow over time, increasing the cost of future remediation and raising legal risks.
While some companies have invested in sophisticated processes to keep track of their pay picture and embed pay equity considerations into their decisions, other employers are still trying to get by with spreadsheets or overlooking the issue entirely. This isn't necessarily unlawful and may be defensible, but it's less than ideal in the best of times, which these definitely are not.
Orrick Of course you went there.
Orrick
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