Sunday, April 18, 2010

Employers Urged to Save Pay Documents

Workforce Management
To defend themselves against allegations of discriminatory pay practices, employers may have to go back decades to provide documentation to defend against those claims. Such records may include payroll files, compensation programs, performance reviews and any of the decisions and guidelines around starting pay, promotional pay and merit increases. By Judy Greenwald
February 2010

The Lilly Ledbetter Fair Pay Act of 2009 has led many employers to re-examine their document retention policies so they’ll be prepared if they are sued under its provisions, but some experts say more work needs to be done.
The act provides that every paycheck resulting from a previous discriminatory pay decision constitutes a violation of several federal laws, meaning employers may have to go back decades to provide documentation to defend against such claims.
A survey released in August 2009 by Hewitt Associates of 1,156 organizations found that 88 percent were aware of the law. It found that 38 percent had conducted a pay-equity analysis, but 36 percent had taken no action in response to the law.
“Now that litigation over compensation decisions can potentially reach back 20 years or more, it’s become important for employers to hold on to records of when and why certain compensation decisions were made,” says Jeffrey D. Polsky, a partner with law firm Fox Rothschild in San Francisco.

Full Story: http://www.workforce.com/archive/feature/27/03/36/index.php

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