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| Risk Management |
| How to Protect Your Business from EEOC Discrimination Charges |
Every business has had the challenging task of, once again, responding to an employee's claim with the local Equal Employment Opportunity Commission (EEOC) office on an official charge of discrimination. The root of one complaint was that the complainant and their coworker were compensated at different rates of pay based on a protected class reason instead of a work performance reason.
The two employees had job duties that were basically the same, had the same date of employment, and even had similar experience, but were paid less than a dollar an hour difference in pay. Sound familiar?
Do you currently have employees in the same or similar circumstances, but are paying them differently as well? Is that permissible? Does the employer have the administrative right to establish the rate of pay? The answer is yes. The caveat: You need to be able to substantiate, in writing, the good business reasoning for your employment decisions.
How does an employer attempt to "protect" themselves from allegations of wrongdoing? They do so by using best practice methods such as formal Employee Evaluation Programs.
How does the above scenario turn out? Good, if the employer has Employee Evaluations to submit to the EEOC along with the position statement; bad, if the employer has no documentation to address the differing levels of their employees' performance, attendance, and conduct.
So where does your company fit? Regardless of company size, the question you must ask yourself is, "Am I willing to try to defend my management decisions with no documentation or casual notes?"
If you have an uneasy feeling in the pit of your stomach right now, please call our HR department so we can help you set up an Employee Evaluation Program. It is a simple process- one that your Human Resources and Benefits Department is ready to help you establish…at no cost!
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