Blog | Connect to HR | Strategic HR Advisors & Executive Coaching

Closing the Wage Gap – What Employers and Women Can Do Now

On April 15, the U.S. House of Representatives passed the Paycheck Fairness Act (H.R.7). If it becomes law, this legislation will require employers to prove that pay disparities between men and women are job-related. It would also prohibit employers from screening job applicants based on their salary history or asking about their previous salary during the hiring process. Additionally, it would prohibit employers from retaliating against workers who discuss their pay with other employees.

Passing in the House is an important first step to narrow the wage gap nationally. In California, where Connect to HR is located, the state passed two measures that strengthen California’s commitment to achieving gender pay equity. When California passed the Equal Pay Act in 1949, it was considered a pioneering piece of legislation meant to address pay inequity. A few years ago, the state passed The California Fair Pay Act which went into effect on January 1, 2016. The purpose of this law was to help eliminate the longstanding loopholes around pay equity and move toward eliminating the gender wage gap.

Although at both the state and Federal level there is current or pending legislation to create more pay equity, employers do not need to wait any longer before taking action to support female employees.

Here are some things you can do:

Implement parent-friendly policies with access to paid sick days and paid family leave that go above and beyond what the state mandates. Often women are punished for taking time off to care for their child or family members.
Consider job applicants’ experience and value to the organization when setting compensation rather than basing it on salary history. In California, salary can’t be your only basis for making hiring decisions.
Eliminate the employment gap penalty that often results in women being paid less than their worth. Take into account and give credit to non-professional experiences that an applicant has that can translate into the workforce, e.g., running volunteer events, holding leadership roles on the PTA, budgeting, etc.
Initiate an annual compensation review and make adjustments to achieve pay equity.
Promote more women to leadership positions.

Women: you can also help yourself by being more vocal about the value you provide and by advocating with your employer for equal pay. I heard a really good example of this recently during a forum I participated in on professional women returning to work.

The closing speaker, Raylene Nisbet, told us how she returned to the workforce after being out of it for more than 10 years. Prior to her interview, she did some research on the salary range of the job she was applying for. She got the job, but at a salary she knew was in the mid to lower range of the scale for that job. She accepted that salary because it offered her an entry back into the workforce. She justified it based on her employment gap. This is a typical situation for women who have been out of the workforce.

After only a few months on the job, Raylene had already demonstrated her value by her personal results and the results of other team members, whom she was coaching and mentoring. She went back to her boss – with data – and asked for and received an increase in pay to where she should have been in the first place!

So, women:

Do your research – know what the job should pay
Recognize and articulate your value
Keep track of your accomplishments
Consider hiring a coach, finding a mentor or sponsor for support
Prepare your case and have the conversation!

If you would like to learn more about this very important topic, plan to join me at a legal seminar where we will discuss pay equity from both a legal and HR perspective. The law firm of McManis Faulkner will host the seminar on May 19, 2021. I will be co-presenting with my colleague, Michael Warren, who leads the firm’s labor and employment litigation and compliance practice.

Additional information and how to register for the seminar will be announced soon. In the meantime, please save the date.

It’s Time to (Finally) Close the Gender Pay Gap

March 24, 2021. For many this may have been just another day. But for working women it marked Equal Pay Day – the day (3 months into the new year) that women had to work to in 2021 to earn what white, non-Hispanic men earned in 2020 alone. According to the National Women’s Law Center, women working fulltime, year-round are paid, on average, 82 cents for every dollar paid to men.

It’s amazing that in the 21^st century we’re still seeing a significant gap in the way men and women are paid. And we see it in every industry – from hi-tech to sports to entertainment. And given the impact the past 12 months have had on women in the workforce – 2.3 million have left it all together – it’s well past time to change things.

So, what is the long-term impact of this wage gap for women?

According to one study, over the course of a 40-year career, women on average could be paid nearly a half million dollars less than their male counterparts. The gap is even wider for women of color, many of whom earn only 75 cents for every dollar a man makes. As a result of lower lifetime earnings, women receive less in Social Security and pensions. In overall retirement income, women have only 70% of what men do.

An AAUW (American Association of University Women) study – The Simple Truth About the Gender Pay Gap – provides additional statistics about the impact of pay discrimination on women.

Although gender-based discrimination has been illegal since the 1960s, it still thrives in many workplaces, especially those that discourage open discussion of wages and that rely on prior salary history in hiring. If the bar is set low for a woman early on, it may follow her from job to job throughout her career. Also, women may leave the workforce temporarily to raise children or to care for an aging parent. When they return, that employment gap works against them. It may result in their being offered (or accepting) lower pay to enable their re-entry.

It’s time for this to change, and there are many things that men can do to help close the gap. A recent article outlined 5 specific actions men can take to promote pay equity.

Sponsor, coach and mentor female coworkers. Men can advocate for their female co-workers to ensure their value is recognized and that they are considered in promotion opportunities.
Compensation transparency. Salary discussions are often taboo so women may not know that a man doing the same job is paid more. Men can take the lead in exposing inequity by sharing this information with their female mentees.
Take paternity leave. This could help reduce the so-called “motherhood penalty.”
Speak up when women are not present. Again, advocate for women.
Recognize unconscious bias. Don’t assume that a woman won’t want (or be able to handle) a job that requires long hours or travel. Advocate for their equal consideration.

Pay equity is an important discussion. We’ll continue it next time with some actions that employers can take to help close the gap, and what women can do to advocate for themselves.

Helping Women Get Back to Work

As I described in my last article, women – especially women of color – have been disproportionately impacted by job losses during the COVID-19 pandemic. In fact, according to data from McKinsey & Company, women accounted for 56% of people leaving the workforce since February 2020. This has turned back the clock for women in terms of their gains in leadership and pay equity. And it has widened the opportunity gap for women of color, many of whom were employed in the industries hardest hit by the pandemic, such as hospitality and care.

This issue should be a concern not only for the women who have felt forced to leave the labor pool, but also for companies that could potentially employ them. According to the Center for Creative Leadership, gender-diverse teams have higher sales and profits compared to male-dominated teams, and gender-diverse business units have higher average revenue than less diverse business units. Furthermore, a higher percentage of women in an organization predicts:

More job satisfaction
More organizational dedication
More meaningful work, and
Less burnout.

Fortunately, some companies are recognizing the gap that fewer women in the workforce will leave and are trying to address it. One example is Google, who recently announced an initiative to provide 100,000 Black women with career development and digital skills training by Spring 2022. The initiative is part of a $15 million commitment by Google to help Black job seekers grow their digital skills. The program will include training in resume writing, interviewing, online marketing and more.

A number of other large companies offer a variety of return-to-work programs for women who have left the workforce to raise their children or to care for an aging loved one.

What can you, as a small or medium sized company, do to create an environment that attracts and retains women? Here are some ideas:

Be clear about expectations and performance standards. The date when schools will fully open for in-person learning is still uncertain in many areas. This adds to the mounting stress for parents who may be worried about whether they will be required to go back to the office before their children go back to school. Or whether they will be able to secure childcare in time. Be as specific as possible about your return-to-office plans and give an adequate amount of lead time (and flexibility) to accommodate parental needs.

Implement flexible scheduling. Be creative about work hours, taking into consideration that during normal work hours parents, especially moms, may also be supporting their child’s distance learning or caring for an infant who would normally be in childcare. Consider allowing evening or weekend hours in place of daytime hours (not in addition to!) when the other parent or a relative/friend may be able to provide childcare support.

Practice empathy. Demonstrate that you understand that moms are going through a lot right now as they try to juggle work, distance learning support, and domestic responsibilities that traditionally fall to them. Make time for individual check-ins and co-create options that will ease the burden while continuing to advance the work. Assess priorities. Maybe the less critical goals can wait.

Don’t forget that that I will be participating in a panel discussion during a webinar – Professional Women Returning to Work – on Thursday, March 25, hosted by Phase2 Careers. You can register for the program here. Learn more about Phase2 Careers by visiting their website.

I hope you will join us!

The COVID Economy and Its Impact on Working Women

As we enter Women’s History month, we want to shed light on the impact of the COVID-19 pandemic on working women, who have been disproportionately affected by the COVID economy. In January of this year, women were down 5.4 million jobs from February 2020 as compared to men, who lost 4.4 million jobs over the same time-period.

Industries that typically employ a lot of women – education, retail, hospitality – have seen significant job losses over the past year.

But even women who were able to keep their jobs – either working remotely or because they are essential workers – have struggled because of the added burden of childcare issues, distance learning support, and domestic responsibilities that traditionally fall to women. These stressors can be even harder for women who face additional challenges such as poverty, race, having special needs children, or single parenting.

As a result, nearly 2.2 million women have left the labor force entirely, according to a report by the National Women’s Law Center (NWLC). This means they are no longer looking for employment and are no longer counted in unemployment statistics. School closures and the lack of available, affordable childcare are two of the main reasons.

At the beginning of 2020, women accounted for 50.3% of the workforce. The NWLC report noted that it may take years if not decades for women to fully return at that level. The long-term impacts of this for women include stalled career opportunities for higher-level jobs and reduced social security and other retirement savings.

So, what’s to be done?

In an open letter in the Washington Post, a group of men, including celebrities, sports figures, academics and a former Presidential candidate, declared their support for a “Marshall Plan for Moms” a bold 360-plan to get women back to work. The plan was put forth in January by 50 prominent women who called on the Biden Administration to provide direct payments to moms and pass long overdue policies addressing paid family leave, affordable childcare, and pay equity.

The men’s letter declared: “When more than 30 years of progress for women in the workforce can be erased in 9 months, the underlying system is broken. It’s time to create a new structure that works for women, that respects and values their labor. Men have a role to play. As partners and fathers, we need to start doing our share at home. Studies show we are failing.”

Employers also have a role to play. I’ll be talking about that in my next blog. In the meantime, I wanted to let you know that I will be participating in a panel discussion during a webinar – Professional Women Returning to Work – on Thursday, March 25, hosted by Phase2 Careers.

The panel discussion will provide tips and practical advice on:

Transitioning back into the job market
Professional development
The job search process and networking
Resumes and interviewing
Balancing work and family
Resources

You can register for the program here. Learn more about Phase2 Careers by visiting their website.

I hope you will join us!

Simple and Timely – Keys to More Effective Performance Management

As I wrote in my last article, the traditional annual performance review process is not working. Leaders and employees dread it. And there is little indication that the current model results in improved employee motivation or better business outcomes.

It’s time for a change. It’s time to make performance management a process, not just an event. It’s time to make it simple, timely, and meaningful – for both the employee and the organization.

Here are some examples of alternative approaches to the outdated annual review.

Adobe abolished the annual review several years ago in favor of more regular, informal “check-ins.” Managers and employees meet at the beginning of the year to mutually outline expectations for the year. This clarifies for both the manager and employee what the employee is being held accountable for. Managers have regularly scheduled one-on-ones with employees to provide feedback throughout the year. In addition, employees may also receive feedback from peers and other partners across the company.

Another process – Catalytic Coaching – uses 3 simple forms, 4 types of meetings, quarterly check-ins, and the leader as coach as the basis for leader/employee conversations that:

Identify employee strengths and development areas from both the employee and leader perspectives
Give the employee the opportunity to provide feedback to the leader
Facilitate a discussion of the employee’s career goals
Result in the employee’s personal development plan
Include follow up and coaching from the leader to support implementation of the development plan

A third approach is based on the traffic signal metaphor: stop, start, continue. These are one-to-one conversations or check-ins held throughout the year (or on-the-spot, as appropriate) to determine what the employee should stop doing, start doing or continue doing to improve performance, advance development, achieve career goals, etc.

These are just a few examples of different approaches to performance management. Whatever approach you ultimately decide to use, the following features are key:

Giving regular, timely, specific feedback. If there are performance issues, address those issues “in the moment.”
Recognizing strengths rather than just focusing on weaknesses. Give employees opportunities to build on their strengths and develop in the areas where they are not as strong, relative to the needs of the organization and their own career goals.
Adopting a coaching mindset. Feedback should be a development tool, not a report card. Make the process forward-looking rather than backward looking. Train all managers to be coaches rather than evaluators.
Asking for their feedback. Create an environment where employees seek feedback and view it as a growth opportunity. Do this by setting the example. Ask for their feedback – “What can I do better?” “How can I help you?” – and then act on it, as appropriate.
Having the career conversation. Show interest in your employees and their aspirations by having a career conversation. You may find that they have under-utilized skills or interests that you could leverage elsewhere in the company or call upon for a new project or business opportunity. The career path doesn’t necessarily have to be vertical; especially in smaller companies, providing cross-functional experience can be beneficial to both employees and the organization.

Have you taken a hard look at your performance review process lately? Are you giving your employees feedback only once a year or (worse) not at all?

Employees need to feel challenged and recognized. If you’ve been doing the same old, same old, when it comes to your performance review process, I highly recommend that you consider “disrupting the process” to create a feedback strategy that is simpler, more real time, and more effective.

If you are ready to review and change your performance management process, I’d love to work with you. Please contact me at michelle@connecttohr.com.

Now is the Time to Revamp Your Performance Management Strategy

This is the time of year when many organizations conduct what is often referred to as the “dreaded annual performance review.” For many years, leaders and HR professionals have been talking about revamping the traditional process that only 28% of organizations say “positively impacts business indicators.” (according to a Brandon Hall report)

The COVID-19 pandemic has reignited the need to transform the process. And the trend is pointing toward a more simple, agile, timely and inclusive approach to performance management.

So how do we make the process more valuable to the employee and to the business?

Keep it simple. It’s been a challenging year for everyone. Health concerns. Uncertainty in the economy. Adapting to a new way of working. Juggling pressures at home and at work. The goals set prior to the pandemic may no longer apply. Forget the ranking and rating and lengthy narratives. Have a conversation. What’s going well? What’s not working? What’s needed in terms of additional support, additional training, additional effort?

According to the Brandon Hall report, the top performance management priorities for managers in 2021 are the quality of manager check-ins with employees to provide feedback and coaching and the frequency of those manager check-ins.

Make it timely. Waiting until the annual performance review date to manage performance is a disservice to employees and to the company. Make performance management an ongoing activity. Especially now when so many are working from home, it’s even more important to schedule regular 1:1 meetings to discuss challenges and opportunities. Take a holistic, empathetic approach, recognizing that the current crisis may be impacting performance.

Consider making performance reviews and compensation reviews separate. It may be tempting this year to forgo performance reviews because you are not in a position to adjust compensation. But here’s the thing. Employees want and need to know how they are doing. On a regular basis. And they are more likely to look forward to and engage in those discussions if they are not distracted by thinking about their potential raise. Of course, if you make this change, be sure to communicate it in advance to employees.

Performance management should be a process, not just an annual event. COVID-19 has shown us that businesses and leaders need to be agile, and able to quickly adapt as circumstances change. Transitioning to a performance management process that is simple, timely and consistent is a step in that direction.

Tune in next time when I’ll give some specific examples of simple performance management tools and share why it’s so important to create development plans as part of the process.

Tackle Today’s Challenges with Executive Coaching

In the midst of the COVID-19 pandemic, many leaders are facing significantly more challenges than usual in accomplishing the results they want. Health and safety concerns, adapting to a virtual or reduced workforce, and trying to survive in a slowing economy have strained and stretched leaders to their limits.

Throughout 2020, many managers and leaders reached out to me for 1:1 Executive Coaching. They found that having input and support from someone outside their company gave them a fresh approach and new tools to tackle these challenges.

I launched my Executive Coaching Services in 2018 as part of Connect to HR. Since then, the senior executives and leaders I’ve worked with have come to see me as a trusted, confidential coach and advisor. Over the past two years, I’ve been fortunate to help people through Executive Coaching to become more effective leaders or navigate a significant career change.

My typical Executive Coaching clients are not new executives. They are well established in their careers – CEOs, Presidents of small to mid-size companies and Managing Directors, Senior Directors, VPs, and Executive Directors of nonprofits.

They are facing challenges such as:

A career transition. They want support with finding a new opportunity or moving into a new career field but are uncertain about the steps they need to take to make it happen.

A larger promotion or new role. They’ve been assigned a new role with different or increased responsibilities, but with little or no mentoring. Or they’re a leader who has been promoted but doesn’t have the appropriate soft skills to lead their team during these difficult times.

A restructuring that leaves them with more responsibilities than ever. They are feeling overwhelmed and are not getting much guidance or support.

One lesson from 2020 is that you can’t do it alone. I am opening up a few spots to executives who are ready to get support from a professional who can help them achieve their goals.

If you, or anyone in your network finds themselves in one of the situations above, and could use a safe, confidential place to talk about what’s really going on, and to strategize a solution, please consider me as a resource! The first step is connecting with me for a call. Click the link below to choose a time that works for you:

YES, I’m ready to learn more https://calendly.com/michellemendoza-connecttohr/30-minute-consultation

Stay safe, be well and I look forward to connecting with you soon!

– Michelle Mendoza, SPHR & SHRM -SCP

2021: Looking Back to Move Forward

Happy New Year!

A new year gives us the chance to start fresh. And while 2021 will certainly give us that opportunity in some respects, I think it’s also important to take some time to reflect on lessons learned from 2020, and how we can leverage that knowledge going forward.

We are still in the midst of a global pandemic and although the vaccines give us hope, it’s still essential for each of us to follow mandated health and safety guidelines to protect ourselves and others. Business leaders are responsible for protecting their employees. This means putting practices in place to protect both the physical health and safety of employees as well as their emotional and mental health. For tips on best practices for keeping employees safe and healthy, tune into my podcast with Mary Hiland, PhD, president of Hiland Consulting.

It’s important for leaders to be up to date on any new regulations relative to COVID-19. There are several that went into effect January 1, which I discussed in my blog, New COVID-19 Regulations, last month. Also, check out the Employer Resource Page on our website which has links to a variety of sites that deal specifically with COVID-19 information.

And leaders, remember that it’s also important to take care of yourself. Just like when there’s trouble on a flight, when the oxygen masks drop, put yours on first to be better able to help others with theirs. Check out my blog, Self-Care for Leaders in Uncertain Times, for some tips on caring for your own health and well-being.

Although the election is over, our country remains divided. Unfortunately, this can bubble over into the workplace, impacting teamwork, collaboration, and/or performance. A couple of months ago I attended a roundtable led by my colleague, Susan Nelson, Founder, The Pragmatic Life. Check out my blog, Managing Employee Post-Election Anxiety for some tips I learned on how leaders and organizations can help employees through the post-election transition period.

2020 was a year that took the lid off a number of issues, not the least of which was social injustice and diversity, equity and inclusion (DEI). Many organizations are increasing their efforts to create DEI leadership positions and more focused programs in this area.

To succeed, organizations need to do more than just lip service. They need to go beyond just ticking the EEO boxes in hiring and firing practices. Leaders at every level need to create a culture that considers all activities – communication, recruiting, hiring, promoting, company gatherings, team assignments, terminations, etc. – through a lens of diversity and inclusion. As I said in a previous blog, they need to Walk the Talk.

Connect to HR provides strategic HR advice and executive coaching for leaders of small to mid-size for-profit and nonprofit organizations. Please contact me at michelle@connecttohr.com to schedule a conversation about how we can support you and your organization.

New COVID-19 Regulations

In addition to the new laws I described in my last blog, there are some new regulations related specifically to COVID-19.

Cal-OSHA COVID-19 Reporting Requirements

AB 685, effective January 1, 2021, requires that within one business day of being notified by an employee of potential COVID-19 exposure, an employer must provide written notice to all employees of the following:

Potential exposure
Information regarding all COVID-19 related benefits available under federal, state and local laws
Disinfection and safety plan the employer will implement per CDC guidelines

Employers must maintain records of notifications for at least three years.

Workers Compensation

SB 1159 creates “rebuttable presumption” that, in certain circumstances, illness or death from COVID-19 is work-related. This rebuttable presumption remains in place until January 1, 2023, and applies to all employees who:

Work for a company with five or more employees
Test positive during any COVID-19 outbreak at the place of employment

Workers Compensation now also has a new reporting requirement that employers must report to their Claims Administrator within three days that an employee has tested positive for COVID-19.

An employer may dispute the presumption by providing evidence of measures it took to reduce potential transmission of the disease or the employee’s nonoccupational risks of COVID-19 infection.

Testing and Vaccines

Employers may require, as part of their COVID-19 health and safety protocols, that employees who work onsite be periodically tested for COVID-19, as long as the employer pays for the test and adheres to HIPAA and privacy law.

Employers may not, however, require antibody testing.

As for vaccines, the rules on this are not clear yet, so the best thing to do is consult your legal counsel.

COVID-19 Prevention Plan

As of November 30, 2020 Cal-OSHA has required employers to have a written COVID-19 Prevention Plan. This can be a stand-alone document or integrated into the employer’s Injury and Illness Prevention Program.

The COVID-19 Prevention Plan applies to all employees except: 1) When there is only one employee who does not come in contact with other persons; 2) Employees working from home; 3) Employees already covered by the aerosol transmission standard.

The written COVID-19 Prevention Plan must include the following:

A system for communication
Identification and evaluation of COVID-19 hazards
Investigating and responding to COVID-19 cases in the workplace
Correction of COVID-19 hazards
Training and instruction
Physical distancing
Face coverings
Other engineering controls, administrative controls, and personal protective equipment (PPE)
Reporting, recordkeeping, and access
Exclusion of COVID-19 cases
Return to work criteria

Cal/OSHA has a model COVID-19 Prevention Plan on its website as well as FAQs and other helpful information for employers about COVID-19.

As a reminder, we have an employer resource page that has links to a variety of sites that deal specifically with COVID-19 information. Here’s the link again for your reference Connect to HR Employer Resources.

Also, I spoke to my colleague, Mary Hiland, Ph.D earlier this year on the topic of health and safety in the workplace. Click here for a recap of the interview.

Please reach out if you need help updating your IIPP or have questions about implementing these new regulations.

New Employment Laws for 2021

A new year is just around the corner! No doubt we will all be happy to put 2020 behind us!

As with every new year, there are a number of new employment laws and regulations. This is the first of two articles to inform you about those laws.

Expanded California Family Rights Act (CFRA)

The California Family Rights Act currently requires employers with 50 or more employees to provide eligible employees with 12 weeks of unpaid leave in a 12-month period to 1) recover from a serious health condition; 2) care for a family member with a serious health condition; or 3) bond with their child.

SB 1383 expands CFRA coverage, effective January 1, 2021, as follows:

The law now applies to employers with 5 or more employees
It eliminates the employee count within a 75-mile radius requirement
The definition of covered family members is expanded from child, parent, spouse or domestic partner to include grandparent, grandchild and siblings
“Child” is no longer limited to children under age 18
The leave cap of 12 weeks for new child bonding for two parents employed by the same employer has been eliminated
The key employee exception is now repealed
The law repeals the New Parent Leave Act for employers with 20 to 49 employees because the new CFRA will provide this coverage

A CFRA and Federal Family Medical Leave (FMLA) may run concurrently or separately depending on whether the CFRA leave is covered by FMLA. If it’s not, an eligible employee may take both – 12 weeks for CFRA and an additional 12 weeks for FMLA. Be sure to update your policies to reflect the changes.

Deadline for CA Sexual Harassment Prevention Training

SB 778 extends the deadline for CA anti-harassment training to January 1, 2021 for employers with fewer than 50 workers/contract employees.

All employers must provide two hours of training to supervisors and one hour of training to non-supervisors. Training must be repeated every two years and new employees/supervisors must be trained within their first six months. Other requirements include:

Supervisor training must be “live,” and interactive, e.g., via a webinar, with the opportunity for participants to ask questions, have them answered and seek guidance and assistance. Supervisors are expected to actively participate in the training. Employers must document attendance and keep for two years a copy of the webinar, plus all written materials, responses submitted during the webinar, and all written responses or guidance the training provided during the webinar.

Increased Protections for Employees Who are Victims of Crime or Abuse

AB 2992 expands protections for employees who take time off from work as a result of crime or abuse. Existing law requires that employers with 25 or more employees allow an employee who was the victim of domestic violence, sexual assault and/or stalking to take time off to seek medical attention or related services. The new law expands those protections to include victims of any other crime or abuse that causes physical or mental injury and a threat of physical injury, and any person whose immediate family member is deceased as the direct result of the crime. Under this law, immediate family members are broadly defined to include child, parent, sibling, partner and any other individual whose close association with the employee is the equivalent of a family relationship. Employers are prohibited from discharging or discriminating against employees who take time off for reasons defined in the law. Find more information here.

Unlimited Vacation

With more companies offering employees “unlimited vacation,” it’s important to note some recent case law around the payout of unused vacation upon termination. In McPherson v. EF Intercultural Foundation, multiple former employees sued for failure to pay unused vacation. They had been told by the company that they could take an unspecified amount of time off for vacation, subject to their supervisor’s approval. Because the employer did not have a written policy that clearly defined and communicated the obligations of employee and employer in requesting and approving time off, the Court required that the employer make some payment to the employees for expected vacation that they did not use.

If you offer, or are considering offering unlimited vacation, be sure you have a written policy and that you review it with your legal counsel for compliance. Also, be sure that you administer the policy consistently and you communicate it to your employees. Note that unlimited vacation policies should not apply to non-exempt employees.

EEOC Pay Data Reporting

Although federal EEO reporting has been paused, California passed legislation in September (SB 973) that requires employers with 100 or more employees to report certain pay and other data to the Department of Fair Employment and Housing (DFEH). The first report is due March 31, 2021 and annually thereafter. Find out more about reporting requirements here.

Minimum Pay Changes

Finally, please note these minimum pay rate changes for California employees, all effective January 1, 2021.

Non-exempt minimum wage:

$14/hour for employers with 26 or more employees
$13/hour for employers with 25 or fewer employees

Minimum exempt salary:

$58,240/year for employers with 26 or more employees
$54,080/year for employers with 25 or fewer employees

Computer Software Professionals: $98,907.70 per year ($47.48 per hour)

Minimum wage rates may vary according to the city/county where the employee works. Be sure you are adhering to local requirements.

As always, please reach out to me at michelle@connecttohr.com if you have questions.

In my next article we’ll cover some new laws and regulations specifically related to COVID-19.