Individual pay equity refers to a remuneration rate that has been determined through fair and impartial means. Pay equity involves the establishment of remuneration that is commensurate to the work being done. Individual pay equity should be based on duties and responsibilities performed which translate to value for the business.
The Equal Pay Act of 1963 proscribes (that is prohibits, forbids) differences in pay based on gender. Further, the Civil Rights Act of 1991 prohibits difference in pay based on religion, sex, color, race, national origin, age, disability, pregnancy and veteran status. This directs that personal bias with regards to individual differences may not form the basis for remuneration.
Compensation practice under individual pay equity, therefore, is to focus on remuneration based on value. Payment is thus to be harmonized and commensurate with value to ensure the compensation system is equitable for all workers.
No comments:
Post a Comment