Avoid Discrimination in Payroll
Avoid Discrimination in Payroll
If you have been keeping an eye on current events, you will know that discrimination is a major issue that many American’s are actively involved with. Discrimination, or the act of negatively treating another person because of race, religion, sexuality, or social standing, has been present for as long as anyone can remember, and has been the grounds for major lawsuits that have been filed against both people and businesses in the past. It has even gone as far as to be the cause of a business shutting down completely. This is why it is important to take steps to ensure that discrimination does not occur in your own company.
How do you make sure this doesn’t happen? The simple answer would seemingly be not to discriminate against anyone in your company, but that is not enough to ensure you have a discrimination free workplace. There are steps that can be taken to protect yourself and your company from any major lawsuits that may occur.
1. Know the Laws: There are laws set forth by the Equal Pay Act, that requires that all employees get paid equal wages regardless of race or gender. In this instance, pay is not just payroll, it is also employee benefits such as overtime, vacation pay, bonus pay, stock options, and so on. When it comes to issuing equal pay, two employees do not need the same job position for the law to take effect, it is the effort and skill required that decides if two employees must have equal pay. For example, when it comes to hiring cashiers, both would be required to have equal pay, but one could be paid less than someone who was hired as a butcher in the meat department. A butcher is working in cold temperatures and dangerous equipment, making their job require more skill and effort.
2. Create an Anti-Discrimination Policy: We discussed in an earlier article that an employee handbook is an important part of any company. In an employee handbook one of the policies listed should be on anti-discrimination both in wages and in employee behavior. Make sure employees understand the consequences of showing discrimination against any customer or fellow employee. An employee represents their company when on their job, and if one shows prejudice toward a customer, it could come back to the company. By having an employee handbook that each employee signs, they are aware of the company policy.
3. Keep Organized Documents on all Wage Related Items: When it comes to giving a pay increase to an employee, or offering them any form of benefit, keep proper documents showing why they got the raise, how much the raise was for, and how much their pay was before the raise. This includes performance reports. Make sure your reports are as detailed as possible. If your company is ever accused of wage discrimination, you will have these documents to show why a certain person did or did not receive a raise or any form of benefit.
4. Aim to have an Effective and Diverse Workforce: When it comes to hiring an employee, focus solely on the aspects that matter for employment. Consider their work history, education, merit, if required their physical fitness.
- It should be noted that discrimination laws also cover those with disabilities, who must be considered for a job if they have the base requirements such as education, and are physically capable of performing the job with or without reasonable accommodation. Reasonable accommodation can mean modifying equipment, job restructuring, alternate work schedule, and adjusting training that will not bare overwhelming issue or expense.
The workplace functions best when everyone works together. Anti-discrimination laws and policies help to ensure a work environment remains friendly and welcoming to all eligible applicants. If you have questions about anti-discrimination laws and policies, or about hiring in general, the talented staff of Vision H.R. can help answer your questions, or take over the hiring process all together. Along with being a human resource management, Vision H.R. is also a trusted partner and welcomed aid for Melbourne Payroll Services and Staffing Solutions.
