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SHRM Weighs in on the Paycheck Fairness Act

SHRM Weighs in on the Paycheck Fairness Act

HR professionals have a unique perspective and expertise on the issue of pay equity, as they are directly involved in developing and implementing compensation strategies that attract and retain talent. When the U.S. House of Representatives considered H.R. 7, the Paycheck Fairness Act on April 14, SHRM submitted a letter to House leadership expressing concern that this legislation would restrict employers’ ability to base pay decisions on the legitimate business practices they currently use to determine compensation, such as professional experience, training, education, skills and shift differentials. The House passed the bill by a vote of 217-210.

“Equitable pay is critical to creating thriving workplaces, which is why SHRM vigorously supports the concept,” said Emily M. Dickens, SHRM chief of staff, head of government affairs and corporate secretary. “However, policy proposals that stifle HR professionals’ ability to reward employees based on business factors such as education, qualifications, skills and relevant experience do not adequately address the issue. SHRM will continue to work with policymakers to ensure employers have the flexibility to make pay decisions on their unique and legitimate business practices while ensuring everyone is equally compensated based on their work.”

The bill now moves to the Senate for consideration.

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