Fundamentals of EEO in a CareerBanded Environment

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Fundamentals of EEO in a Career-Banded Environment

• Career-banding 101
• Office of State Personnel
• February, 2007

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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.

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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

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Types of Pay Equity in a Career-Banded Environment

• Internal Equity
• External Equity
• Individual Equity

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Pay Factors

• FAIR
• Financial Resources
• Appropriate Market Rate
• Internal Pay Alignment
• Required Competencies

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Types of Discrimination

• Disparate Treatment
• Direct discrimination
• Unequal treatment
• Intentional
• Prejudiced actions
• Different standards for different groups

• Disparate Impact
• Indirect discrimination
• Unequal consequences or results
• Unintentional
• Neutral actions
• Same standards but different consequences

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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)

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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.

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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

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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.

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Possible Connections
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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.

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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.

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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.

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Strategies and Tools

• Strategies and Tools to Address EEO and Pay
  Equity Concerns
• Training
• Accountability
• Decision-Point Monitoring Techniques
• Four-Fifths or 80 Rule
• Employee Advisory Committee

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Training

• Managers and Supervisors
• Preliminary to implementation
• Continued high level technical support

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Accountability

• HR Office Responsibilities
• Management Responsibilities
• Employee Responsibilities
• Employee Advisory Committee

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Decision-Point Monitoring Techniques

• Internal Monitoring Systems
• External Monitoring Systems - PMIS
• PM669
• PMEMP
• PMXCLASS

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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.

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Example of 80 Calculation

• Contributing Advanced
• Males 40 20
• Females 30 6
• Identify selection rates (males 50 (20/40))
  (females 20 (6/30))
• Identity group with highest rate males at 50
• Establish selection rate to avoid adverse impact
  (selection rate threshold) 4/5th or 80 of 50
  50 x .8 40
• Determine if adverse impact is indicated. In
  this case, female selection rate is only 20,
  less than the 40 threshold.

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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

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Employee Advisory Committee

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

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Employee Advisory Committee (Reporting)

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

• Area of Analysis 1 (Representation)
• A demographic analysis of employees by standard
  occupational category and competency level.