Fundamentals of EEO in a Career-Banded Environment

Career-banding 101

Office of State PersonnelFebruary, 2007

Fundamentals of EEO in a Career-Banded Environment

Training Objectives:

- Discuss EEO laws and pay equity concepts related to compensation systems.

- Provide an overview of the different types of discrimination and their application in compensation systems.

- Provide strategies and tools for addressing EEO and pay equity concerns.

- Discuss components of the Employee Advisory Committee.

Laws Related to the Administration of Pay

Fair Labor Standards Act

Equal Pay Act Title VII of the Civil

Rights Act Civil Rights Act (1991) Age Discrimination Act Americans with

Disabilities Act

Types of Pay Equity in a Career-Banded Environment

Internal Equity

External Equity

Individual Equity

Pay Factors

FAIR Financial Resources Appropriate Market Rate Internal Pay Alignment Required Competencies

Types of Discrimination

Disparate Treatment

• Direct discrimination

• Unequal treatment• Intentional• Prejudiced actions• Different standards

for different groups

Disparate ImpactIndirect discriminationUnequal consequences or resultsUnintentionalNeutral actionsSame standards but different consequences

Disparate Treatment

Examples:• Automatically reject

Hispanic applicants• Sexual harassment (quid

pro quo)• Different entry

requirement for men and women

• Inconsistent management practices (discipline for white versus minority employees)

Disparate Treatment

Precedent-Setting Discrimination Case: McDonnell Douglas Corp. v. Green

Supreme Court ruled that individuals can show a prima facie case of disparate treatment if they:

• Belong to a minority group.• Applied for a job.• Were rejected despite being qualified.• Were rejected and yet the employer kept

looking for people with their qualification.

Disparate or Adverse Impact Example:

• Nonessential education requirements for certain jobs that impact minority groups.

• Nonessential height and weight requirements.

Evaluated using the Uniform Guidelines on Employee Selection

Procedures

Disparate or Adverse Impact

Precedent-Setting Discrimination Case:• Griggs v. Duke Power (1971)

Employment discrimination need not be overt or intentional to be present. Employment practices can be illegal even when applied to all employees.

Burden of proof lies with the employer to show that any employment requirement is directly job-related.

Possible Connections

Concern PossibleImpact

PossibleOutcome

Too Much Management Control

Inconsistent pay decisions and/or

prejudicial actions

Loss of EquityDisparate Treatment

Competencies that are Not Job Related

Unequal consequences or results

Disparate Impact

Inadequate Resources for Implementation

Staggered or unequal implementation

Wage Gaps Loss of Equity

What If?

Manager A values “market” as the most important pay factor and gives 1 employee a 10% adjustment to close the market gap.

Manager B values “equity” as the most important pay factor and gives 10 employees a 1% adjustment to be fair.

What If?

Manager A in the Division of Very Smart People insists that all Administrative Support Associates be required to have a college degree. This training requirement is higher than the state standard and has not been validated for its relationship to job success.

What If?

Inadequate resources result in a management decision to focus salary reserve funds on career-banding implementation, while other actions within the graded system are recognized as a lower priority.

Strategies and Tools

Strategies and Tools to Address EEO and Pay Equity Concerns:

1. Training2. Accountability3. Decision-Point Monitoring Techniques4. Four-Fifths or 80% Rule5. Employee Advisory Committee

Training

Managers and Supervisors

• Preliminary to implementation

• Continued high level technical support

Accountability

1. HR Office Responsibilities

2. Management Responsibilities

3. Employee Responsibilities

4. Employee Advisory Committee

Decision-Point Monitoring Techniques

Internal Monitoring Systems

External Monitoring Systems - PMIS

• PM669• PMEMP• PMXCLASS

Four-Fifths or 80% Rule Uniform Guidelines on Employee

Selection Procedures• Covers all aspects of the selection process • Applicable actions include:

Movement from one banded class to another with a higher journey market rate.

Movement from one competency level to another.

Movement within a competency level that results in compensation change.

Example of 80% Calculation

Contributing AdvancedMales 40 20Females 30 6

1. Identify selection rates (males = 50% (20/40)) (females = 20% (6/30))

2. Identity group with highest rate = males at 50%3. Establish selection rate to avoid adverse impact (selection rate

threshold) = 4/5th or 80% of 50% = 50% x .8 = 40%4. Determine if adverse impact is indicated. In this case, female

selection rate is only 20%, less than the 40% threshold.

Employee Advisory Committee

Required beginning in 2007 (EEO Plan)

Combine with EEO Committee or Stand Alone

Reporting Requirements to OSP, A/U Head, and HR Director

Employee Advisory Committee

Guidelines: Mission Statement Role and Responsibility Membership Composition Selection and Appointment Length of Appointment Voting Meetings Training Reporting

Employee Advisory Committee (Reporting)

Area of Analysis #1 (Representation)

A demographic analysis of employees by standard occupational category and competency level.

Area of Analysis #2 (Activity)A demographic analysis of employee activity involving 1) competency level change within band, and 2) promotions.