Important Considerations In Pay Equity Audits

A pay equity audit, conducted proactively under privilege even when no litigation is on the horizon, can keep employers from being caught flat-footed in the event they need to defend against a claim of unequal pay, writes Littler attorney Denise M. Visconti. The purpose of a pay equity audit is to determine, first, if a wage gap exists. Not all wage gaps are unlawful, and an audit must also determine whether any gaps that do exist are the result of legitimate business considerations. When an audit reveals a problem, companies must take action or their case in litigation will be damaged. But, conversely, having done an audit and then taken action can be an important element of a defense. Warning: not all audits are created equal, and a quality audit will be more than a bundle of spreadsheets and technical reports.