Employee Wage Transparency: The Benefits of Making Pay Public

PRESENTED BY CALVIN HOUSE | WWW.GPHLAWYERS.COM

Employee Wage TransparencyTHE BENEFITS OF MAKING PAY PUBLIC

Introduction

The norm

$$$$ Pay Rates $$$$

$100,00 per year

$20 per hour

Secrecy

Secrecy Protections

Can an employer enforce secrecy?

Confidentiality agreement

California Labor Code section 232: No employer may do any of the following: (a) Require, as a condition of employment, that an employee refrain from disclosing the amount of his or her wages; (b) Require an employee to sign a waiver or other document that purports to deny the employee the right to disclose the amount of his or her wages; (c) Discharge, formally discipline, or otherwise discriminate against an employee who discloses the amount of his or her wages.

NLRB: An employer cannot lawfully prohibit employees from discussing matters such as their pay raises, rates of pay, and perceived inequities.

Websites:◦ glassdoor.com◦ salary.com◦ PayScale.com

Is there a privacy right in one’s salary?

Wage information “is normally considered private”◦ Painting Indus. of Haw. Mkt. Recovery Fund v. U.S. Dep't of the Air Force, 26 F.3d 1479 (9th Cir. 1994)

Public employment

Not in the public sphere “[A]n individual’s expectation of privacy in a salary earned in public employment is significantly less than the privacy expectation regarding income earned in the private sector.”

◦ Int’l Fed’n of Prof'l & Technical Eng'rs, Local 21, AFL-CIO v. Superior Court, 165 P.3d 488 (Cal. 2007)

“Public access to specific salary information gives direct insight into the operations of the public body by enabling scrutiny of the wages paid for particular job titles.”

◦ Prof'l Firefighters of N.H. v. Local Gov't Ctr., 159 N.H. 699, 709, 992 A.2d 582, 591 (2010)

Go to transparentcalifornia.com Enter Edmund Brown:

Regular pay Overtime pay Other pay TotalbenefitsTotal pay &benefits

$159,553.80 $0.00 $0.00 $16,588.60 $176,142.40

$159,480.75 $0.00 $0.00 Not provided $159,480.75

$173,856.14 $0.00 $0.00 Not provided $173,856.14

Go to transparentcalifornia.com Enter Eric Garcetti:

Job title Regular pay Overtime pay Other pay TotalbenefitsTotal pay &benefits

MayorLos Angeles, 2013

$194,164.00 $0.00 $0.00 $13,110.00 $207,274.00

Council Member

Los Angeles, 2012

$162,440.98 $0.00 $0.00 $10,597.00 $173,037.98

Council Member

Los Angeles, 2011

$162,441.00 $0.00 $90.00 $10,608.00 $173,139.00

Go to transparentcalifornia.com Enter Tani G Cantil-Sakauye, Chief Justice:

Regular pay: $231,945.36

Overtime pay: $0.00

Other pay: $0.00

Total pay: $231,945.36

Total benefits: $17,395.56

Total pay & benefits: $249,340.92

Go to transparentcalifornia.com Enter Head Coach:

Name Job title Regular pay Overtime pay Other pay Totalbenefits Total pay &benefits

STEPHEN TODD ALFORD INTERCOL ATH HEAD COACH EX

University of California, 2013

$200,000.00 $0.00 $2,439,609.00 Not provided $2,639,609.00

JEFF TEDFORD HEAD COACH 5University of California, 2013

$0.00 $0.00 $2,442,860.00 Not provided $2,442,860.00

JAMES LAWRENCE MORA INTERCOL ATH HEAD COACH EX

$300,000.00 $0.00 $2,110,128.00 Not provided $2,410,128.00

DANIEL DYKES HEAD COACH 5University of California, 2013

$246,031.00 $0.00 $2,124,708.00 Not provided $2,370,739.00

BENJAMIN CLARK HOWLAND

INTERCOL ATH HEAD COACH EX

$300,000.00 $0.00 $2,015,078.00 Not provided $2,315,078.00

Private employment

Buffer Social media tool

Salary formula◦ Salary = job type * seniority * experience + location

Published salaries

SumAll Data, metrics and analytics for users of social media

Salaries set employee by employee within a range

Pay revealed to everyone else at the company

Whole Foods Food seller

Employees may look up everyone’s salary and bonus from the previous year

“If you accomplish what this person has accomplished, I’ll pay you that, too.”◦ CEO John Mackey

Types of transparency

Process transparency How salaries are set

Range of salaries per position

Requirements for getting a raise

Full-salary transparency Exactly how much everyone at the organization earns

Pluses and minuses

AdvantagesTrust

Recruiting

Reduce bias Lily Ledbetter did not know for 20 years that she was earning less

Eliminate gossip

“Transparency builds fairness, fairness drives engagement, engagement drives business success.” Mark A. Szypko, IBM Smarter Workforce Solutions

DisadvantagesMakes lower paid workers feel worse

Negative effect on job performance

Encourages cheating

Apples to oranges comparisons

Drives up executive compensation

Implementation

Job descriptions Qualifications

Essential functions

Physical activity

Salary surveys

Justifications

Intranet v. Internet

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