An Internal Rating System for Base Pay: Is it Necessary?

An Internal Rating System for Base Pay: Is it Necessary?

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Let's face it, in today's time, with the EEOC and the OFCCP adopting more sophisticated technologies to ensure best practices, organizations need to be able to ensure fair pay by adopting an internal job rating system. In addition, market data is becoming less reliable every day so are you going to use external comparisons alone to determine the cost of your largest expense, compensation? The white paper below proposes a few more reasons an internal rating system is becoming the trend like it once was many years ago.

Be sure to check our next eNewsletter in April. The feature, "Reliable Market Data: Does is still exist and where?"

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The EEOC pays 4.5 million:

In an article written by Marcia Coyle for The National Law Journal, it explained that the EEOC will pay $4.56 million in attorney fees and expenses to CRST, a trucking company headquartered in Cedar Rapids, Iowa. The article read that approximately 270 female drivers had been exposed to sexual harassment and a sexually hostile work environment with no protection or actions to correct the misconduct. The judge in the case, Judge Linda Reade, said the EEOC had not compiled the failings of CRST"s managers in any meaningful way to show that CRST had a pattern or practice of allowing sexual harassment. She went on to say that the agency had "wholly abandoned its statutory duties" towards those aggrieved by not conducting any investigation of their allegations. The link for the full report is below.

EEOC Full Report - 4.5 Million in Fees

DBSquared Feature:
OFCCP Initiatives for 2011

March 2010 Edition
Newsletter Spotlight
Download our free white paper: "An Internal Rating System for Base Pay: Is it Necessary?"

OFCCP Incentive for Federal Contractors

"Specifically, if a contractor, in good faith, reasonably implements the general methods outlined in the Voluntary Guidelines -- which includes remedying any statistically significant compensation disparities identified by the self-evaluation which are not explained by legitimate, non-discriminatory factors -- OFCCP will coordinate its compliance monitoring activities with the contractor's self-evaluation approach. If the contractor's compensation self-evaluation system reasonably meets the general standards outlined in the Voluntary Guidelines, OFCCP will consider the contractor's compensation practices to be in compliance with Executive Order 11246."
-Found on the DOL Website-

The Department of Labor has released the OFCCP Enforcement Budget and Initiatives for 2011.

  • It was announced "OFCCP will increase the percentage of evaluations on compensation discrimination. For this measurement, FY 2010 will serve as a baseline for refinement of compensation discrimination investigative procedures."
  • The enforcement efforts will be broadened. The OFCCP will be focusing on identifying and resolving both individual and systemic discrimination.
  • OFCCP will establish baseline measures to determine if their efforts achieve greater compliance. There will be an industry-based establishment compliance evaluation study and a corporate, multi-establishment compliance evaluation.
  • OFCCP will dedicate additional resources to increase monitoring of federal contractors self-audits and correcting identified problems.
  • You can view the full report by following the link