If in the near future you meet Lilly Ledbetter, it means
that one of your employees filed a compensation
discrimination claim against you with the Equal Employment
Opportunity Commission (EEOC).
The Supreme Court previously ruled that a compensation
discrimination charge had to be filed within 180 days of a
discriminatory pay-setting decision. As such, if you
hired someone 5 years ago at a salary that would be
considered discriminatory, the person had 180 days from
the date of hire to file a charge.
A new law, the Lilly Ledbetter Fair Pay Act recently
signed by President Obama, states that each paycheck that
delivers discriminatory compensation is a wrong that is
actionable, regardless of when the discrimination began.
In the above example, the employee who is still with you
after 5 years is now eligible to file a charge within 180
days of receipt of each paycheck.
HR CONTRARIAN POINTER: There is nothing more basic to the
employment relationship than compensation. And in my
opinion, there is nothing easier to administer.
The thing to remember is that just because you have pay
disparities, it doesn’t necessarily mean that there is
unlawful pay discrimination. There are many defensible
reasons for disparities such as job role, experience,
education, industry, location, etc.
However, these defensible reasons must be based on a
compensation program that is objective and does not
discriminate against any protected class such as gender,
minorities, handicapped, etc. Your program must be
objective when it comes to bonuses, raises, hiring, pay
A simple Compensation Audit can determine you whether you
have anything to worry about. If you are interested in a
Compensation Audit, give us a call to discuss it, rather
than waiting until Lilly comes knocking.