Protect Your Business from Litigation Relating to the Lilly Ledbetter Fair Pay Act

Posted by in Compensation & Benefits | Comments Off on Protect Your Business from Litigation Relating to the Lilly Ledbetter Fair Pay Act

In early 2009, President Obama signed the Lilly Ledbetter Fair Pay Act. The Act (based on a Supreme Court ruling) allows for the 180-day statute of limitations to file an equal-pay lawsuit, regarding pay discrimination, to begin again with each new discriminatory paycheck, instead of the date when the parties agreed to the wage amount.

Although widely covered in the media, many companies have not taken the proactive steps they should to protect themselves. The first step is to conduct an audit of your compensation system, including the job evaluation process, pay structure, performance management program and compensation guidelines. The second step is to analyze internal salary equity, including standard cohort analysis and regression analysis. The final step is to create a system to maintain pay equity.

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