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
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.
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