Author’s note: Pay equity and pay equity analyses are a complex and nuanced issue, and context matters. Employers should always consult with legal counsel prior to engaging in any proactive pay equity studies and conduct those analyses under the attorney-client privilege.
As part of their obligation to "evaluate compensation system(s) to determine whether there are gender-, race-, or ethnicity-based disparities" under Executive Order 11246, 1 many contractors utilize multiple regression techniques to evaluate pay equity within their workforces. Such in-depth, statistical studies can highlight patterns of disparities in pay between protected class subgroups 2 that require follow-up investigation. Follow-up research may highlight areas