U.S. Department of Labor Recovers More Than $2.9 Million To Resolve Alleged Pay Discrimination Violations at Dell EMC

PRESS RELEASE
5-14-18

SAN FRANCISCO, CA – The U.S. Department of Labor has reached a settlement with Dell EMC that requires the company to pay more than $2.9 million in back wages to remedy alleged pay discrimination violations at four Dell EMC locations in California and North Carolina. Headquartered in Hopkinton, Massachusetts, Dell EMC is a federal contractor providing computing, networking, and data storage solutions.

The settlement follows routine compliance evaluations by the Department’s Office of Federal Contract Compliance Programs (OFCCP) that found, beginning in 2014, Dell EMC systemically discriminated against females in engineering, marketing, and sales roles at its Pleasanton, California, facility and females in engineering and manufacturing roles at its Santa Clara, California, facility. OFCCP investigators found that the company paid women and African Americans in engineering roles at its Durham, North Carolina, facility less than white males. Investigators also found that the company paid African American females in manufacturing roles in Apex, North Carolina, less than white males.

“The Department of Labor appreciates Dell EMC’s cooperation to resolve these issues,” said OFCCP National Director Ondray Harris. “Together, we will ensure that the company complies with equal employment opportunity laws in its compensation practices.”

In its conciliation agreement with OFCCP, Dell EMC denies liability but will pay more than $2.9 million in back pay and interest to the affected class members. The company will also make pay adjustments, and take steps to ensure its pay practices meet legal requirements.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

 

Learn more by visiting www.johansongroup.net or www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

University of Denver to Pay $2.66 Million and Increase Salaries to Settle EEOC Equal Pay Lawsuit

PRESS RELEASE
6-1-18

Female Full Professors at the University’s Sturm College of Law Were Paid Average of Nearly $20,000 Less Than Their Male Counterparts, Federal Agency Charged

DENVER – The University of Denver will pay $2.66 million and furnish other relief to settle a pay discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

The EEOC’s lawsuit charged that the university violated federal law by paying a class of female full professors at the Sturm College of Law lower salaries than it paid to their male counterparts who were performing substantially equal work under similar working conditions.

According to the EEOC’s lawsuit, as of October 2013, salaries of female full professors were on average, $19,781 less than those of male full professors, and all the women’s salaries were below the average salary paid to men. Despite formally recognizing the significant pay disparity in a 2013 memo, the university declined to take corrective action by adjusting salaries of female full professors.

Such alleged conduct violates the Equal Pay Act of 1963 and Title VII of the Civil Rights of 1964, which both prohibit discrimination in compensation based on sex. The EEOC filed its lawsuit, EEOC et al. v. University of Denver, Case No. 1:16-cv-02471-WYD-MJW, in 2016 in U.S. District Court for the District of Colorado, after first attempting to reach a pre-litigation settlement through its conciliation process.

“The favorable resolution of this case is a clear example of the EEOC’s commitment to fully enforcing our federal laws against pay discrimination.  I hope cases like these get the attention of all employers and lead them to not only review their pay practices, but take action to address discrimination when they find it.” said EEOC Acting Chair, Victoria A. Lipnic.

In addition to $2.66 million in monetary damages to seven female full professors who participated in the lawsuit, the consent decree settling the suit also requires the University of Denver to increase the 2018 salaries of the seven female professors; annually publish salary and compensation information to tenure, tenure-track, and contract faculty; and employ a labor economist to conduct an annual compensa­tion equity study.

The university will also work with an independent consultant to review methods and criteria used to determine pay and compensation, and these standards used to determine raises each year will be announced to the faculty in advance of the academic year. The independent consultant will also assist the university to revise its anti-discrimination policies and to conduct an informational campaign and training on those anti-discrimination policies. The decree will remain in effect for six years, but may end a year early based on an established record of compliance. While the decree is in effect, the independent consul­tant will provide regular progress and compliance reports to both the EEOC and the University of Denver. The court approved the settlement and will retain jurisdiction while the decree is in effect.

Noting the importance of protecting civil rights, Senior District Judge Wiley Y. Daniel, who approved the consent decree, stated during the hearing: “We need to make sure we learn from our history and we understand the importance of moving forward, not backwards, moving forward, not sideways.”

“The Equal Pay Act and Title VII are clear that pay discrimination based on a person’s sex is a violation of federal law – no exceptions,” said EEOC Regional Attorney Mary Jo O’Neill. “As we just recently marked Equal Pay Day, the EEOC remains committed to elimination of pay discrimination in the workplace.”

Phoenix District Director Elizabeth Cadle said, “This resolution is an excellent result, not only for the seven women who will receive compensation and salary increases to address past pay inequities, but also for other faculty members who will benefit from increased pay transparency and an annual pay equity study targeted at preventing similar inequities from arising in the future.”

The University of Denver is a private research university in Denver made up of 13 undergraduate and graduate schools and colleges.

The EEOC’s Phoenix District Office has jurisdiction over Arizona, Colorado, New Mexico, Utah, and Wyoming.

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov.  Stay connected with the latest EEOC news by subscribing to our email updates.

 

Learn more by visiting www.johansongroup.net or www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

A $2+ Million Price Tag Times Two

Pay Inequity/Pay Discrimination can cost an organization a significant sum of money as evidenced in the two following 2018 press release articles, one from the EEOC and the other from the OFCCP.

Johanson Group, an HR/Compensation consulting company has assisted at least a thousand plus clients since 1973 with the review of their employees’ compensation practices including steps to correct pay discrimination issues.  Its sister company, DB Squared, was established in 2005 using the Johanson’s copyrighted 15-factor job rating system methodology and automating its Job Evaluation and Salary Administration Program (JESAP) so that organizations could internalize their compensation program and be able to identify their own pay equity issues.  Both companies are here to support and assist companies by using a proactive approach to avoid being the spotlight in a negative and costly manner.

 

PRESS RELEASE
6-1-18

University of Denver to Pay $2.66 Million and Increase Salaries to Settle EEOC Equal Pay Lawsuit

Female Full Professors at the University’s Sturm College of Law Were Paid Average of Nearly $20,000 Less Than Their Male Counterparts, Federal Agency Charged

DENVER – The University of Denver will pay $2.66 million and furnish other relief to settle a pay discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

The EEOC’s lawsuit charged that the university violated federal law by paying a class of female full professors at the Sturm College of Law lower salaries than it paid to their male counterparts who were performing substantially equal work under similar working conditions. (continue reading……)

 

PRESS RELEASE
5-14-18

U.S. Department of Labor Recovers More Than $2.9 Million To Resolve Alleged Pay Discrimination Violations at Dell EMC

SAN FRANCISCO, CA – The U.S. Department of Labor has reached a settlement with Dell EMC that requires the company to pay more than $2.9 million in back wages to remedy alleged pay discrimination violations at four Dell EMC locations in California and North Carolina. Headquartered in Hopkinton, Massachusetts, Dell EMC is a federal contractor providing computing, networking, and data storage solutions. (continue reading….)

 

Learn more by visiting www.johansongroup.net or www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

How Are Organizations Utilizing Retiring Baby Boomers’ Compensation?

How Are Organizations Utilizing Retiring Baby Boomers’ Compensation?

One of our public clients has experienced 17% turnover during the first eight months of 2018. The average tenure of the employees leaving this organization is almost 5.5 years and a measurable group of these employees are retiring baby boomers.

The average pay variance between the new hires and terminated employees for the above mentioned client is 16.7% or about $6,365 dollars per employee. With the impact of daily baby boomer retirements, we estimate that organizations will have between 10% and 25% in total compensation dollars to reallocate within their annual employee compensation budgets.

For small to large organizations, the amount of freed-up dollars associated with baby boomer terminations due to retirements can be significant and useful for taking care of high priority compensation needs. Some of these needs will include new hire replacements, funding variable pay incentive plans, addressing pay compression and pay inequity issues, bonus pay for top performers and a variety of other pay initiatives.

For organizations with remaining baby boomers that will retire in the next three to five years, how will you plan to use their 4th quartile base pay salaries to fund other compensation needs?

Learn more by visiting www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

Creating a Competitive Advantage through Pay Equity

Creating a Competitive Advantage through Pay Equity

Every organization should be in business for a particular purpose.  DB Squared’s main purpose is to provide HR technology tools to improve efficiency, effectiveness and positive outcomes in the compensation arena.  Johanson Group, sister company to DBSquared, provides compensation and strategic planning consulting to its clients around the U.S.  Recently, we have taken several of our clients through a competitive advantage exercise to determine what their core strengths are and how to use them to maintain and grow their competitive advantage for five to ten years in the future.

When an organization can show that their pay practices and policies are equitable and consistent with no difference to gender, ethnic background or age, a competitive advantage will exist as there is still a pay differential for women and minorities in the workplace around the U.S.  If you are not sure about your pay equity status, we can assess and implement a compensation program that provides your organization with one more competitive advantage and will increase the level of employee satisfaction and transparency.

 

Learn more by visiting www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

HAPPY POST 4TH of JULY

HAPPY POST 4TH of JULY

Now that we’re on the backside of the celebratory 4th of July – Independence Day fireworks and picnics, it is time to get back to work with attracting and retaining employees through competitive pay and strategic total rewards benefits. During the recent 4th of July holiday, it was amazing to see how small compacted fireworks create such spectacular nighttime displays of colorful sparks. When lit, these small containers in relative size compared to the resulting expansive firework displays are a profound mystery of awe and yet a technological mastery of increasing proportion. The chemistry of fireworks is based on the theory of combustion, but a simple observation could be made based on the theory of compression.

Speaking of compression, many of our compensation clients are experiencing pay compression issues. With tighter labor markets and increasing starting wages for new hires, the pay levels between newly hired employees and employees with one to three years of tenure are getting tighter. The compression of the air-fuel mixture in an internal-combustion engine just before ignition creates powerful energy. The employee energy associated from pay compression issues can be significant until the employer resolves these issues. Identification of pay compression starts the process towards releasing the valve on negative pay comments and the potential of losing tenure employees. Employers without internal pay structures/plans will use a “time in position” percentage of market pay means to determine pay adjustments for employees expressing pay compression concerns with newly hired employees. Employers with internal pay structures/plans that are competitive with market pay means by position will use a “time in position” percentage of the internal job grade pay range midpoint for pay movement decisions that lessen pay compression problems.

The average timeframe for an employee to reach their respective position pay range midpoint is a key factor when addressing pay compression in an organization. The private sector employees on the average tend to reach their pay range midpoints within 4 to 5 years. The public sector employees on the average will reach their pay range midpoints in 8 to 10 years depending on the average annual pay percentage increases of 3 to 4% of base pay. Also, the pay range spread will be another key component in determining how quickly employees will reach position pay range midpoints.

Let’s hope that your internal pay compression situation can be resolved with firework “Sparklers” instead of huge sky-filling firework displays with M-80 sonic booms!

Happy Post 4th of July Boom!

 

Learn more by visiting www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

Why Annual Employee Pay Adjustments Aren’t Moving Up As Fast As Expected

Why Annual Employee Pay Adjustments Aren’t Moving Up As Fast As Expected

Over the past five plus years, the average salary budget adjustment for base salaries has hovered around three percent (3%).  Each year, several of the large compensation consulting companies will conduct annual surveys for their clients to determine what the average projected base salary budget adjustment will be for the next year.  For the last few years, it looked as though the average increase was going to be heading north of 3%, but in reality, that hasn’t happened.  We started wondering what is causing the adjustment to remain flat each year and we think we have determined one of the reasons.

The baby boomers aren’t retiring at age 65 and this is causing several organizations to continue to employ them at their higher salary levels compared to the younger generations with less time in their respective companies.  We believe that as more of the baby boomers finally retire, this will help to realign and shift salary dollars to the younger employees.  We should finally see annual salary budgets moving above 3% and without significant new salary dollars added to the annual payroll budget.

 

Learn more by visiting www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

Even 60 Minutes Is In On It

Even 60 Minutes Is In On It

On a recent Sunday evening, the popular show 60 Minutes ran a segment on an important topic that is getting a lot of attention today and part of the Me Too movement. Human Resources professionals around the world have been working to correct this issue for several years. What was different and important to note in the 60 Minutes program, a CEO of a large corporation (over 30,000 employees) was his commitment to have the HR team audit this issue. After the audit was completed, the company spent $3 million the first year to correct the issue. What is the issue? Pay Gender Parity and also, more women in executive company roles. The 60 Minutes piece indicated that women are currently paid on average 20% less than males in the same positions and that the number of women in senior level positions at the large corporation being interviewed for 60 Minutes was only 20%.

As compensation professionals, we have worked with over a thousand companies in the past 32 years. Companies that have a formal compensation and benefits philosophy statement that has been developed and adopted by the Board of Directors and an executive team committed to accomplishing and adhering to that statement do a better job of pay and leadership parity among all classes of employees. A solid compensation and benefits philosophy statement will directly address pay and leadership parity. For pay and leadership inequity to be eliminated, the Board of Directors and top management must commit and follow through on pay and leadership parity decisions.

If you need assistance to determine where your organization stands with this issue, we are here to help evaluate and set the stage to correct any pay and leadership parity issues within your organization.

Learn more by visiting www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

Equal Pay Day 2018

EQUAL PAY DAY 2018 Tuesday, April 10

Equal Pay Day is the approximate day the typical woman must work into the new year to make what the typical man made at the end of the previous year. Based on 2016 Census data, the 2018 wage gap between women and men is $.80 (cents).

Equal Pay Day was originated by the National Committee on Pay Equity (NCPE) in 1996 as a public awareness event to illustrate the gap between men’s and women’s wages.

Equal pay, comparable worth pay, pay equity and pay for “substantially similar” positions are gaining greater traction at the national and state levels. Federal and State laws are addressing the systemic recruitment, job valuing, and compensation management practices that perpetuate pay gaps between women and men and all employees regardless of their gender, race, ethnicity and age.

Even though the pay gender gap continues through numerous contributing factors, using a defensible and valid job valuing system will help organizations determine if certain positions are “substantially similar” as defined by several state laws that require equal pay for equal work. Proactive organizations that embrace the equal pay for equal work philosophy will utilize proven and new processes to foster equitable pay practices for all employees.

Johanson Consulting, dba Johanson Group, developed and has maintained a proprietary job valuing system for 33 years. This system was licensed to DB Squared in 2006 and it is embedded in the DBCompensation software so human resources and compensation professionals are able to automate the internal job valuing function for their organizations.

Learn more about creating and maintaining internally equitable and externally competitive pay plan structures/scales by visiting www.dbcompensation.com.

Useful Job Descriptions Pay Dividends

Alan G. Crone, Attorney with Crone Law Firm, PLC wrote an article in the HR Professionals March issue titled, “The Business Case for Compliance”.  Mr. Crone, with over 25 years of employment law, mentions in his article that he is often asked what lessons he has learned that HR Professionals can apply to lessen or mitigate employment lawsuit and litigation expenses.

Alan recognizes that employment law is complicated, ever-changing and hard to manage with employee and employer value differences.  He states in the article, “There are no simple solutions, however I do suggest three simple strategies as a great start, that if you follow them you will reduce the number of employment related claims, complaints and lawsuits:

  1. Draft and maintain hyper-accurate job descriptions;
  2. Communicate clearly the company’s expectation for employees and confront them when they do not live up to those expectations; and ,
  3. Refocus compliance efforts as training rather than as discipline.”

This article continues with Mr. Crone going into more detail on how these simple strategies can be applied with good common business sense and thorough application.  As human resources professionals for our respective employers, what are the dividends we can expect by implementing a useful job descriptions strategy as noted in Alan Crone’s article.

  • More informed candidates
  • Improved staffing and compensation decisions
  • Accurate and current job descriptions
  • Positive impact in management decisions
  • Greater defensibility
  • Compliance with ADA – reasonable accommodations
  • Compliance with FLSA – Exempt / Non-exempt (duties and responsibilities)

Mr. Crone completes the Job Descriptions section of his article with the following statement, “Top-notch job descriptions will create operational efficiencies, less lawsuits, better hiring decisions, more focused training and discipline, and less turnover.”

As human resources and compensation consultants and software providers, we support Mr. Crone’s advocacy for comprehensive, consistent and compliant job descriptions.  The time spent with bringing dated job descriptions to a current and accurate status will pay dividends for internal and external stakeholders.

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