Certified Human Resource Professional (CHRP) Practice Exam

Which of the following is a compensable factor under the Pay Equity Act?

1. Race

2. Gender

3. Pay grade

4. Responsibility

The correct answer is: Responsibility

The concept of compensable factors under the Pay Equity Act refers to the criteria used to evaluate job roles and determine appropriate compensation levels while ensuring fairness and equity in pay. One key factor that is recognized as compensable is responsibility. This involves assessing the level of accountability, authority, and decision-making involved in a particular job. Jobs that carry greater responsibility are typically compensated at a higher level due to the complexity and potential impact of the decisions made. In the context of the Pay Equity Act, analyzing job responsibilities helps to ensure that individuals are compensated fairly based on the demands and significance of their roles. This promotes equity in the workplace by aligning pay with the nature of the work performed rather than subjective or biased considerations. Other factors, such as race and gender, are considered protected characteristics and cannot be used in determining compensation as stipulated by discrimination laws. Pay grade, while related to pay structures and classifications, does not serve as a compensable factor in the context of evaluating job content and responsibilities for equitable pay adjustments.