Balancing compliance with pay equity and organizational goals is more critical than ever amid shifting federal and state laws. Amid evolving regulations, pay equity requires strategic planning and legal awareness to ensure compliance and organizational fairness.
Evolving Federal Landscape
There have been major changes in federal enforcement under the current administration, said Joanna Colosimo, vice president of workforce analytics and compliance strategy at DCI Consulting Group, at SHRM25 in San Diego. Colosimo highlighted how three recent shifts might influence risk for employers.
- Executive Order (EO) 14173 rescinded prior affirmative action requirements for federal contractors outlined in EO 11246. This limits the enforcement scope of the Office of Federal Contract Compliance Programs (OFCCP).
- Recent guidance from the U.S. Equal Employment Opportunity Commission and U.S. Department of Justice introduced frameworks to identify “illegal DEI [diversity, equity, and inclusion] practices,” emphasizing enforcement aligned with Title VII of the Civil Rights Act. Colosimo stressed that this applies to all protected classes, ensuring that every demographic group is reviewed equitably.
- EO 14281 challenges employers to carefully assess neutral policies to ensure they do not unintentionally harm certain groups.
State-Led Regulations Driving Action
States are stepping into the gaps left by federal agencies, explained Quenton Wright, vice president and economic consultant at...
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