The Pay Equity Consequences Of Reclassifying Employees

Law360, New York (July 29, 2016, 12:12 PM EDT) -- Recent changes in the U.S. Department of Labor's minimum compensation requirements for claiming exempt status of white collar employees, scheduled to take effect on Dec. 1, 2016,[1] — coupled with a trend toward newly broadened gender pay equity laws that allow comparisons of "substantially similar" employees — raise potential pay equity concerns in the near future. Outside and inside counsels who advise clients on pay equity issues, especially in firms considering future changes to the exempt classifications of lower-paid white collar employees, must recognize where, any why, these potentially adverse effects can arise.

Specifically, this note provides an illustration of how...

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