Employers Are Finally Ready to Talk About How Much They Pay

From today’s Bloomberg News:

Up until last week, none of the 170 employees working at Verve, a marketing company, knew what anyone else made. Now, everyone’s salary is listed on an internal document for everyone to see.

By 2019, all 1,100 employees at CareHere, a Nashville based health-care company, will know the pay ranges for all positions in the company. Fog Creek, a New York-based software company with about three dozen employees, did the same last year. As did Hired, an online job search network in San Francisco that employs 200 people.

Employers have long discouraged talking about money at work, in part because obscuring salary information keeps compensation costs down. But that attitude is starting to change. In a survey of almost 2,000 employers by the consulting firm Willis Towers Watson, more than half of the respondents said they plan to increase transparency around pay decisions in the next year.

Pay transparency can mean a lot of things. A minority of companies are taking the most extreme approach, where everyone knows what everyone else makes. A larger share of companies are letting employees in on the voodoo behind their pay practices and explaining what goes into compensation decisions. Others are revealing pay ranges for positions and posting that information alongside job listings.

“Many of us who entered the workforce a longer time ago entered into a culture where you didn’t talk about pay,” said Sandra McLellan, who heads Willis Towers Watson’s North America rewards practice. “Today, people are much more comfortable discussing what they earn.”

Employees now have more access to compensation data than ever before—just not necessarily from their employer. Sites such as Glassdoor and Fairygodboss aggregate and list pay information for thousands of jobs across industries, giving workers a clearer picture of how their pay stacks up against that of their co-workers. Even LinkedIn has a feature that breaks down pay by job title and location.

The proliferation of information is leading to some issues for employers. More than anything, people want to feel like they’re being paid fairly, surveys have found. Armed with this new information, many of them are going to their managers and complaining that they’re not.

Read the complete article here.

DOJ Says Title VII Law Doesn’t Protect LGBTQ Employees From Discrimination

From today’s New York Times by Alan Feuer

The Justice Department has filed court papers arguing that a major federal civil rights law does not protect employees from discrimination based on sexual orientation, taking a stand against a decision reached under President Barack Obama.

The department’s move to insert itself into a federal case in New York was an unusual example of top officials in Washington intervening in court in what is an important but essentially private dispute between a worker and his boss over gay rights issues.

“The sole question here is whether, as a matter of law, Title VII reaches sexual orientation discrimination,” the Justice Department said in a friend-of-the-court brief, citing the 1964 Civil Rights Act, which bars discrimination in the workplace based on “race, color, religion, sex or national origin.” “It does not, as has been settled for decades. Any efforts to amend Title VII’s scope should be directed to Congress rather than the courts.”

The department filed its brief on Wednesday, the same day President Trump announced on Twitter that transgender people would be banned from serving in the military, raising concerns among civil rights activists that the Trump administration was trying to undermine lesbian, gay, bisexual and transgender rights won under previous administrations.

The filing came in a discrimination case before the United States Court of Appeals for the Second Circuit involving Donald Zarda, a skydiving instructor. In 2010, Mr. Zarda was fired by his employer, a Long Island company called Altitude Express. Before taking a female client on a tandem dive, Mr. Zarda told the woman he was gay to assuage any awkwardness that might arise from his being tightly strapped to her during the jump. The woman’s husband complained to the company, which subsequently fired Mr. Zarda. Mr. Zarda then sued Altitude Express, claiming it had violated Title VII.

Read the entire article here.