April 22, 2011 The Four Horsemen of the Compensation Apocalypse

The Four Horsemen of the Compensation Apocalypse have arrived...

(I use the term apocalypse to mean "events of great importance", not "the complete and total destrction of the world")

 In the last two years, there have been four major events that have impacted the way we study compensation from an internal equity perspective:

1. The Ledbetter Fair Pay Act;

2. Creation of the National Equal Pay Enforcement Task Force;

3. The OFCCP's proposal to rescind the Compensation Standards and Guidelines;

4. The reintroduction of the Paycheck Fairness Act.

On their own, each of these events has implications for how employers make compensation decisions and how internal pay equity is examined. Together, they have the potential to revolutionize the way pay decisions are made, and may change the rules of internal pay equity forever.

In this installment, we discuss each of these four events, and what each means for employers.