Fundamentals of EEO in a Career-Banded Environment

1. Fundamentals of EEO in a Career-Banded Environment • Career-banding 101 • Office of State Personnel • February, 2007

2. 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.

3. 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

4. Types of Pay Equity in a Career-Banded Environment • Internal Equity • External Equity • Individual Equity

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

6. 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

7. 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)

8. 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.

9. 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

10. 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.

11. Possible Connections

12. 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.

13. 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.

14. 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.

15. 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

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

17. Accountability • HR Office Responsibilities • Management Responsibilities • Employee Responsibilities • Employee Advisory Committee

18. Decision-Point Monitoring Techniques • Internal Monitoring Systems • External Monitoring Systems - PMIS • PM669 • PMEMP • PMXCLASS

19. 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.

20. 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.

21. 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

22. Employee Advisory Committee • Guidelines: • Mission Statement • Role and Responsibility • Membership Composition • Selection and Appointment • Length of Appointment • Voting • Meetings • Training • Reporting

23. Employee Advisory Committee (Reporting) • Area of Analysis #1 (Representation) • A demographic analysis of employees by standard occupational category and competency level. Area of Analysis #2 (Activity) • A demographic analysis of employee activity involving 1) competency level change within band, and 2) promotions.