APPLICABILITY
Indicator metrics apply to all of the following groups (see definitions in General Clarifications):
- Employees
- Contractors
Organizations may exclude interns from their pay ratio calculation due to the nature of internships being both inherently term-limited as well as for the purpose of gaining experience in the organization’s respective field.
Where applicable, organizations should prorate salaries for part-time employees and contractors based on the minimum hours that meet the organization’s definition of a full-time employee.
ORGANIZATIONS WITH MULTIPLE LOCATIONS
Organizations with offices in multiple locations must calculate pay scale equity using lowest and highest employee aggregate wages across all locations combined.
PAY SCALE EQUITY POLICY AND PAY RATIO
If pursuing Level 2 or above, the Pay Scale Equity policy must include the ratio of salary between the lowest paid employee and the highest paid employee. In this pay ratio, the 1 represents the lowest employee salary and the other number represents the highest employee salary.
PAY CLASS
For the purposes of Just, pay class may be determined by title (e.g., manager, director, executive) or other work classifications relevant to the organization.
SALARY TRANSPARENCY
While Living Future encourages organizations to exercise internal transparency around their salary bands, salary-related information will not be publicly shared as part of the Just program. A Just organization’s database page will include the pay ratio only.
SCOPE OF COMPENSATION
While organizations are encouraged to factor in all forms of compensation (such as retirement contributions, health care benefits, transportation stipends, and stock options), when evaluating the equity of senior management compensation relative to that of the lowest paid workers, for the purposes of Just, organizations need only report on the differential relative to base salary and bonuses combined. For the purposes of Just, this is referred to as the aggregate wage.
