# Pay equity audit
> Source: https://legalcode.md/skills/legalcode-pay-equity-audit | [HTML version](https://legalcode.md/skills/legalcode-pay-equity-audit)

Conducts a comprehensive pay equity audit — from data scoping and similarly situated employee group (SSEG) construction through statistical regression design, LNDF validation, gap classification, remediation budget modeling, and reporting.

Conducts a comprehensive pay equity audit — from data scoping and similarly situated employee group (SSEG) construction through statistical regression design, LNDF validation, gap classification, remediation budget modeling, and reporting. Use when analyzing workforce compensation for gender, race, or other protected-class pay disparities; preparing for OFCCP contractor audits; complying with California SB 1162, New York pay transparency requirements, Colorado Equal Pay for Equal Work Act, or Illinois EPRC obligations; implementing the EU Pay Transparency Directive (2023/970/EU) joint pay assessment; managing pre-litigation pay equity risk; or building a proactive annual pay equity program. Supports both US multi-state and EU multinational engagements. Covers statistical regression methodology (OLS, adjusted/unadjusted gaps), attorney-client privilege structuring, and remediation waterfall modeling.

This skill guides a pay equity audit from intake through final deliverable. It equips an AI agent to structure the analysis, identify similarly situated employee groups, design a regression model, classify pay gaps by severity, model remediation cost, and draft the audit report. **Covers:** - SSEG (Similarly Situated Employee Group) construction and validity testing - Legitimate non-discriminatory factor (LNDF) selection and taint analysis - Statistical regression model design (adjusted vs. unadjusted gaps, significance thresholds) - Gap classification (EQUITABLE / AT-RISK / DISPARITY / SYSTEMIC) - Remediation budget modeling (waterfall, targeted, and blanket approaches) - EU Pay Transparency Directive 2023/970/EU compliance assessment - US federal law (EPA, Title VII, Lilly Ledbetter) and multi-state compliance matrix - Attorney-client privilege structuring for proactive audits - Intersectionality analysis design - Exposure estimation and prioritization - Regulatory reporting requirement mapping **Does not:** - Execute statistical computations or run regression software (requires a qualified compensation analyst) - Provide legal advice or substitute for qualified employment counsel - Certify compliance with any specific regulatory requirement - Replace the judgment of a credentialed compensation expert This skill is **US/EU dual-coverage** by design but structurally jurisdiction-agnostic — the analysis framework adapts to the governing legal regime identified in Step ...

## Jurisdictions

Global



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*Legalcode -- legalcode.md*