Besides the annual review, when else must the pay equity plan be reviewed?

Besides the annual review, when else must the pay equity plan be reviewed?

• A. Only upon request by employees
• B. After significant changes to the business, such as a merger
• C. Before hiring new employees
• D. Never

Answer: (B)

Pay equity plans must be kept current not just with an annual check, but also after any significant changes to the business that affect compensation. A merger, for example, can combine departments, redefine job families, or shift pay bands, which may alter whether compensation remains equitable between genders. Re-evaluating the plan after such changes helps catch and correct new inequities that could arise from the altered structure. Reviews aren’t triggered only by employee requests, they aren’t strictly tied to pre-hiring steps, and they aren’t something to skip indefinitely—material changes require a fresh review to maintain equity.

Pay equity plans must be kept current not just with an annual check, but also after any significant changes to the business that affect compensation. A merger, for example, can combine departments, redefine job families, or shift pay bands, which may alter whether compensation remains equitable between genders. Re-evaluating the plan after such changes helps catch and correct new inequities that could arise from the altered structure. Reviews aren’t triggered only by employee requests, they aren’t strictly tied to pre-hiring steps, and they aren’t something to skip indefinitely—material changes require a fresh review to maintain equity.