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 ConcernPossible Impact Possible Outcome Too Much Management Control Inconsistent pay decisions and/or prejudicial actions Loss of Equity Disparate Treatment Competencies that are Not Job Related Unequal consequences or results Disparate Impact Inadequate Resources for Implementation Staggered or unequal implementation Wage Gaps Loss of Equity

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: 1. Training 2. Accountability 3. Decision-Point Monitoring Techniques 4. Four-Fifths or 80% Rule 5. Employee Advisory Committee

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

17. Accountability 1. HR Office Responsibilities 2. Management Responsibilities 3. Employee Responsibilities 4. 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 ContributingAdvanced Males 40 20 Females 30 6 1. Identify selection rates (males = 50% (20/40)) (females = 20% (6/30)) 2. Identity group with highest rate = males at 50% 3. Establish selection rate to avoid adverse impact (selection rate threshold) = 4/5 th or 80% of 50% = 50% x.8 = 40% 4. 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.