legally savvy: how staying on top of labor laws can give you a competitive edge.

Employment law is always evolving, and it can be hard to keep up. As an employer, staying on top of these trends – and the new laws and regulations that result from them – can help you stay compliant. However, compliance is just part of the equation. Adeptly navigating the legal landscape, particularly when it comes to workplace equality, can help you stay ahead of the competition by offering a more attractive place to work.

In today’s legal climate, certain developments are putting workplace equality in the spotlight. Here are four key developments worth noting:

1. an uptick in pay equity laws

An increase in salary range transparency laws is helping to address wage inequality, gender discrepancies included. These new laws require employers to disclose pay ranges to both external job applicants and internal promotion opportunities. Depending on the law, salaries must be included in job postings, during the hiring process or upon request.

What do they mean for you?

• Anticipate pay recalibration as employees become aware of co-workers’ salaries. Otherwise, you could see low morale and a loss of productivity – or even the exit of top talent to the competition.
• Review your non-monetary benefits, such as company culture, work-life balance and learning and development opportunities.
• Watch for potential litigation following legislation.

2. workplace flexibility remains important

One of the remaining impacts of the pandemic is employees’ ongoing desire for work-life balance, including the push for a flexible work location and hours worked. This is especially true for female employees who often bear the brunt of caring for young children and older relatives outside of working hours. However, this trend makes compliance to new equity laws a challenge.

While laws requiring information such as clear salary disclosure can enhance employee negotiations and help address gender wage inequality, they may also create significant administrative burdens, especially for a remote/hybrid workforce.

To stay proactive:

• allow time to respond to new laws given the complexity of hybrid work structures
• monitor employee satisfaction across demographics
• adjust your overall talent strategy as needed

3. increased reporting requirements

New equity laws and regulations can lead to an increase in mandatory government reporting requirements for your organization. While the requirements will vary from law to law, you might need to:

• Expand your current data collection process by enhancing existing procedures.
• Collect new or different data you may have never collected before.
• Consolidate your process in order to merge current data with the new data collected.

4. automated employment decision tools (AEDTs) face scrutiny

As AI technology rapidly transforms the face of the workplace, concern for bias from the government and regulatory agencies increases. Specifically, algorithm bias from AI hiring platforms includes the potential for discrimination, including gender, age and other demographic factors. For this reason, AEDTs are in the spotlight – and spurning new laws aimed at protecting employees.

For example, New York City recently passed a law that requires prior notification to job applicants, the ability for them to opt out and other restrictions. It also requires an annual, independent bias audit to be made public.

This is an evolving topic that requires legal vigilance, increased training and development for your staff and clear communication with your stakeholders.

what you can do now

Equality remains important to the U.S. workforce, and the legislative agenda reflects this. To prepare for the changes and stay ahead:

1. know your laws

A rule can change significantly from initial proposal to final resolution, so follow legislation and plan as you go rather than waiting to make critical changes to your operation.

2. assess your staffing model

It may be necessary to move key talent or hire additional employees – either temporary or permanent – to successfully facilitate changes.

3. stay transparent

When changes are announced, maintain open lines of communication to build trust with all stakeholders.

4. report effectively

New mandatory government reporting requirements can be disruptive, but poor execution is worse, exposing you to penalties, fines and the risk of a bad reputation.

5. work with a trusted partner

A knowledgeable organization that stays up to date on the legislative agenda and is experienced in delivering a successful response to new laws and regulations can offer you custom-fit solutions to help you stay both compliant and productive.