Employer pay practices are impacted by many factors, such as length of service, market conditions (i.e., the number of qualified applicants in the labor market), employee transfers, promotions and demotions within and between various pay plans, and individual employee skills, competencies, abilities and qualifications.
While the bill makes an exception to the "equal pay for equivalent service" requirement for some factors, it leaves out other legitimate factors. For example, market factors and internal pay practices are ignored entirely.
Missoula County has at least 12 separate pay plans covering over 700 employees. Employee movement among and between pay plans is commonplace. It is virtually impossible in this environment to achieve or even approach perfect "internal pay equity."
For these reasons, most private sector employers use only market pricing and job performance to establish pay rates for individual employees, and completely ignore internal job comparisons.
This bill, if passed into law, would no doubt increase litigation and litigation costs for employers who establish pay rates for individual employees based on legitimate, non-discriminatory factors.
One clarification: On further review, the bill does address market factors, but in a very limited way, referencing salary negotiations with a prospective job applicant. Missoula County has run into situations in which no qualified applicants apply for our vacant positions, in which case we sometimes need to advertise a broader or higher pay range to even attract applicants.
Sent the following to Reps Reinhart, Furey, Squires on House Business and Labor:
Missoula County opposes House Bill 378 - provide criteria for pay equity and dispute processes, before the House Business and Labor Committee on Monday morning. HB 378 would increase litigation and litigation costs, even for employers who establish pay rates for individual employees based on legitimate, non-discriminatory factors. Missoula County has at least 12 separate pay plans covering over 700 employees. Employee movement among and between pay plans (transfers, promotions, demotions, etc.) is commonplace, and ensuring perfect internal pay equity is virtually impossible. Employees who are subject to gender-based discrimination already have sufficient remedies available under applicable state and federal laws. Please oppose HB 378. Respectfully, Dale Bickell on behalf of the Board of County Commissioners
This bill is problematic.
ReplyDeleteEmployer pay practices are impacted by many factors, such as length of service, market conditions (i.e., the number of qualified applicants in the labor market), employee transfers, promotions and demotions within and between various pay plans, and individual employee skills, competencies, abilities and qualifications.
While the bill makes an exception to the "equal pay for equivalent service" requirement for some factors, it leaves out other legitimate factors. For example, market factors and internal pay practices are ignored entirely.
Missoula County has at least 12 separate pay plans covering over 700 employees. Employee movement among and between pay plans is commonplace. It is virtually impossible in this environment to achieve or even approach perfect "internal pay equity."
For these reasons, most private sector employers use only market pricing and job performance to establish pay rates for individual employees, and completely ignore internal job comparisons.
This bill, if passed into law, would no doubt increase litigation and litigation costs for employers who establish pay rates for individual employees based on legitimate, non-discriminatory factors.
One clarification: On further review, the bill does address market factors, but in a very limited way, referencing salary negotiations with a prospective job applicant. Missoula County has run into situations in which no qualified applicants apply for our vacant positions, in which case we sometimes need to advertise a broader or higher pay range to even attract applicants.
ReplyDeleteSent the following to Reps Reinhart, Furey, Squires on House Business and Labor:
ReplyDeleteMissoula County opposes House Bill 378 - provide criteria for pay equity and dispute processes, before the House Business and Labor Committee on Monday morning. HB 378 would increase litigation and litigation costs, even for employers who establish pay rates for individual employees based on legitimate, non-discriminatory factors. Missoula County has at least 12 separate pay plans covering over 700 employees. Employee movement among and between pay plans (transfers, promotions, demotions, etc.) is commonplace, and ensuring perfect internal pay equity is virtually impossible. Employees who are subject to gender-based discrimination already have sufficient remedies available under applicable state and federal laws. Please oppose HB 378.
Respectfully,
Dale Bickell on behalf of the Board of County Commissioners