================================================================================
PAY EQUITY ANALYSIS

DATASET OVERVIEW

Total Employees: 15
Unique Roles: 3
Departments: Engineering, Product, Analytics
Gender Distribution: {‘Male’: 8, ‘Female’: 7}

DETAILED ANALYSIS BY ROLE

────────────────────────────────────────────────────────────────────────────────
ROLE: Software Engineer
────────────────────────────────────────────────────────────────────────────────
Sample Size: 5 employees
Salary Range: $115,000 - $132,000
Mean: $123,600
Median: $125,000
Standard Deviation: $7,021
Coefficient of Variation: 5.7%
Pay Spread: 13.6%

Gender Pay Analysis:
Male: n=3, Mean=$128,333
Female: n=2, Mean=$116,500

⚠️ Gender Pay Gap: +10.2%
Statistical Significance: p=0.0253 (SIGNIFICANT)
Risk Level: HIGH

────────────────────────────────────────────────────────────────────────────────
ROLE: Product Manager
────────────────────────────────────────────────────────────────────────────────
Sample Size: 5 employees
Salary Range: $142,000 - $162,000
Mean: $151,000
Median: $148,000
Standard Deviation: $8,602
Coefficient of Variation: 5.7%
Pay Spread: 13.5%

Gender Pay Analysis:
Male: n=2, Mean=$160,000
Female: n=3, Mean=$145,000

⚠️ Gender Pay Gap: +10.3%
Statistical Significance: p=0.0114 (SIGNIFICANT)
Risk Level: HIGH

────────────────────────────────────────────────────────────────────────────────
ROLE: Data Analyst
────────────────────────────────────────────────────────────────────────────────
Sample Size: 5 employees
Salary Range: $85,000 - $98,000
Mean: $91,600
Median: $92,000
Standard Deviation: $5,225
Coefficient of Variation: 5.7%
Pay Spread: 14.1%

Gender Pay Analysis:
Male: n=3, Mean=$95,000
Female: n=2, Mean=$86,500

⚠️ Gender Pay Gap: +9.8%
Statistical Significance: p=0.0425 (SIGNIFICANT)
Risk Level: MEDIUM

================================================================================
RISK ASSESSMENT & COMPLIANCE STATUS

High Risk Gaps (>10%): 2
Medium Risk Gaps (5-10%): 1
Low Risk Gaps (<5%): 0

Overall Risk Level: HIGH

================================================================================
REMEDIATION RECOMMENDATIONS

Recommended Salary Adjustments:

Employee Title Current Recommended Adjustment Priority Timeline
────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
Maria Garcia Software Engineer $ 118,000 $ 128,333 $ 10,333 CRITICAL Immediate
Sarah Williams Software Engineer $ 115,000 $ 128,333 $ 13,333 CRITICAL Immediate
Emily Davis Product Manager $ 145,000 $ 160,000 $ 15,000 CRITICAL Immediate
Jessica Lee Product Manager $ 142,000 $ 160,000 $ 18,000 CRITICAL Immediate
Amanda Martinez Product Manager $ 148,000 $ 160,000 $ 12,000 CRITICAL Immediate
Jennifer Anderson Data Analyst $ 88,000 $ 95,000 $ 7,000 HIGH 30 days
Lisa Moore Data Analyst $ 85,000 $ 95,000 $ 10,000 HIGH 30 days

Total Annual Cost of Remediation: $85,667

================================================================================
EXECUTIVE SUMMARY

Number of Significant Concerns: 3
Overall Risk Level: HIGH
Total Estimated Remediation Cost: $85,667

Top 3 Priority Actions:

1. ADDRESS HIGH-RISK GENDER PAY GAPS
   • Software Engineer: +10.2% gap (Males: $128,333, Females: $116,500)
   • Product Manager: +10.3% gap (Males: $160,000, Females: $145,000)

2. IMPLEMENT IMMEDIATE SALARY ADJUSTMENTS
   • Adjust 7 employee(s) to market median within role
   • Estimated cost: $85,667 annually

3. ESTABLISH PAY EQUITY GOVERNANCE
   • Implement formal compensation bands for each role
   • Conduct annual pay equity audits
   • Train hiring managers on equitable starting salary determination
   • Document legitimate business reasons for any pay differences

================================================================================
COMPLIANCE CHECKLIST

Federal Compliance (Equal Pay Act & Title VII):
⚠️ POTENTIAL NON-COMPLIANCE - Significant unexplained pay gaps exist

State-Specific Requirements:
• California (AB 2282): Employers 100+ must file pay data report
• New York (Civil Rights Law 194-a): Requires compensation history ban compliance
• Colorado (Equal Pay for Equal Work Act): Mandates job posting salary ranges
• Illinois (Equal Pay Act): Prohibits pay discrimination and requires equal pay certification

Recommended Actions:

1. Consult employment attorney for detailed compliance review
2. Document all pay differential justifications (tenure, scope, performance)
3. Review hiring and promotion processes for equity
4. Prepare privilege-protected pay equity audit with legal counsel

================================================================================
COST-BENEFIT ANALYSIS

Immediate Remediation Cost: $85,667 annually

Phased Implementation Option:
• Phase 1 (Critical - Immediate): Adjust high-risk gaps
• Phase 2 (30 days): Address medium-risk discrepancies
• Phase 3 (90 days): Standardize compensation bands

Cost vs. Legal Exposure:
• Remediation Cost: $85,667/year
• Potential Equal Pay Act Violations: Up to 2-3 years back pay + liquidated damages
• Estimated Legal Exposure: $307,000 - $628,333
• Recommendation: Immediate remediation is cost-effective risk mitigation

================================================================================
METHODOLOGY & LIMITATIONS

Analysis Methodology:
• Statistical analysis within each role (Software Engineer, Product Manager, Data Analyst)
• Z-score calculation to identify outliers (>2 standard deviations)
• Independent t-tests for gender pay gap significance
• Risk categorization: High (>10%), Medium (5-10%), Low (<5%)

Limitations:
• Internal equity analysis only - does not benchmark against external market
• Assumes similar performance distribution across demographic groups
• Small sample sizes (n=5 per role) reduce statistical power
• Base salary only - does not include equity, bonuses, or benefits
• Does not control for individual performance ratings or specialized skills

Confidentiality Notice:
This analysis contains sensitive compensation data. Recommend limiting
distribution to CEO, CFO, CHRO, and legal counsel only.

================================================================================