Case Study: Pay And Gender

    Case Study: Pay and Gender For this assignment, you are the new Compliance Representative in the HR Department. It is your primary goal to ensure the organization is compliant with laws and regulations in all areas including recruiting/hiring new people, employee safety, and fair labor practices for current employees. While you address compliance concerns in all departments, you report to the VP of Human Resources. Read the case study of Sarah Green and provide a two-part response to the VP of HR. Part One: Read and analyze the scenario below. Write a report to the VP of HR summarizing the case and providing a clear argument that an EEOC act was violated. State which act applies to the case. Part Two: Prepare an outline of a training session for hiring managers and for the pay and benefits specialists to prevent a repeat of the situation in the scenario. Case Study Sarah Green has been an accountant for 12 years. She worked in a small medical practice for two years after earning her BS in Accounting and then chose to work freelance for five years. For the past five years she worked at a large firm, Stokely and Associates, where she brought in more new clients than 92% of her colleagues and received a higher satisfaction score from clients than 90% of her coworkers. Sarah had to move to a new city to care for her sick mother. This meant finding a new accounting position. She was excited to be hired at the large accounting firm, Parker and Mendez Accounting, LLC, right away. Unfortunately, she learned after 4 months that she was being paid less than her coworkers who had equal or less experience than she did. When she asked the hiring manager about the discrepancy, she was told that the organization’s policy is to pay in a range based on previous pay. The hiring manager did admit to being surprised that her previous salary was at the low end of the expected range given her successes and performance reviews, but the policy is there for a reason and making an exception defeats the purpose of the policy. After researching her industry and old employer, Sarah learned that her previous employer regularly paid women less than men even when the women had more experience or brought in more clients. Her current pay was impacted by this discriminatory practice. The report to the VP of HR should include two parts: Part One A summary of Sarah’s case. Address which of the EEOC acts the previous organization violated. An explanation of the ethical and legal obligations of the current organization. A proposed solution for Sarah. A proposed change in policy for determining starting pay at the current organization. Part Two An outline of a training session for all hiring managers and benefits and payroll specialists. Each of these sections should be included and explained briefly but with enough detail that the decision-makers reading the report are fully informed and can approve the training. Introduction: Provide an overview of the training. Example: Excellence in Interviewing is a two-week online training that introduces the best practices in interviewing. Scope: State how broad or narrow the focus of the training will be. Objectives: List what participants will be able to do using “To + verb” statements. Example: To roleplay an effective phone interview. To write three behavioral interview questions that assess given criteria. Training Method: Explain the format of the training. Online, face-to-face, blended, asynchronous or in real time or both. Evaluation using Kirkpatrick’s Levels: Address each level of Kirkpatrick’s in detail. Share specific strategy to evaluating the proposed training.  

Sample Solution

   

To: VP of Human Resources From: Compliance Representative Date: August 16, 2023 Subject: EEOC Violation and Proposed Training

Summary of Sarah's Case

Sarah Green is a highly experienced accountant with a proven track record of success. She has been working in the accounting field for 12 years, and she has consistently brought in more new clients and received higher satisfaction scores than her peers. However, when she was hired at Parker and Mendez Accounting, LLC, she was paid less than her coworkers who had equal or less experience.

Full Answer Section

    Sarah's previous employer, Stokely and Associates, regularly paid women less than men even when the women had more experience or brought in more clients. This discriminatory practice resulted in Sarah being paid less than she deserved at her previous job, and it also impacted her starting salary at Parker and Mendez. EEOC Act Violated The Equal Pay Act of 1963 (EPA) prohibits employers from paying different wages to men and women who perform equal work in the same establishment. The EPA does not require that jobs be identical in order to be considered equal work. Rather, jobs are considered equal if they require equal skill, effort, and responsibility and are performed under similar working conditions. In Sarah's case, she clearly performs equal work to her male coworkers. She has the same level of experience, education, and skills, and she performs the same job duties. The only difference is her gender. As a result, Parker and Mendez is in violation of the EPA by paying Sarah less than her male coworkers. Ethical and Legal Obligations of Parker and Mendez Parker and Mendez has an ethical and legal obligation to pay Sarah the same wage as her male coworkers. The EPA is a federal law that prohibits sex discrimination in pay, and Parker and Mendez is subject to this law. If Parker and Mendez does not pay Sarah the same wage as her male coworkers, it could face a lawsuit from Sarah or the EEOC. In addition to the legal risks, Parker and Mendez also faces reputational risks by paying Sarah less than her male coworkers. This could damage the company's brand and make it more difficult to attract and retain top talent. Proposed Solution for Sarah Parker and Mendez should immediately pay Sarah the same wage as her male coworkers. In addition, the company should apologize to Sarah for the discrimination she has experienced. Parker and Mendez should also take steps to ensure that this does not happen again. Proposed Change in Policy for Determining Starting Pay Parker and Mendez should change its policy for determining starting pay so that it is not based on previous pay. Instead, the company should base starting pay on the job requirements and the employee's qualifications. This will help to ensure that all employees are paid fairly, regardless of their gender or previous pay. Training for Hiring Managers and Payroll Specialists Parker and Mendez should provide training to all hiring managers and payroll specialists on the EPA and how to avoid paying employees differently based on their gender. The training should cover the following topics:
  • The definition of equal work under the EPA
  • The legal risks of paying employees differently based on gender
  • How to ensure that employees are paid fairly, regardless of their gender
The training should be interactive and engaging, and it should be repeated on a regular basis to ensure that all employees are aware of the company's policies and procedures.

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