Ensure your compliance with federal laws that prohibit compensation discrimination, including the recently enacted Lilly Ledbetter Fair Pay Act of 2009.

Federal discrimination laws specifically prohibit employers from basing an employee’s compensation on their sex (gender), race, age, religion, national origin, or disability. These laws include the Equal Pay Act (EPA), Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA). Judgments in compensation discrimination lawsuits can include back pay, salary adjustments, liquidated damages, and payment of the plaintiff’s attorney fees. Pay-related claims are also highly likely to expand into class action litigation.

In January 2009, President Obama signed into law the Lilly Ledbetter FairPay Act, which overturned a 2007 Supreme Court decision regarding the statute of limitations on compensation discrimination charges. Under the new law, the length of time allotted to file a compensation-related claim resets with each new pay period, regardless of when the discriminatory practice began. Legal experts expect the new law to result in a significant increase in compensation discrimination charges, particularly among women and minorities. In 2007, according to the U.S. National Census, women earned approximately 77 cents for every dollar earned by males, and minorities earned less than 76 cents for every dollar earned by Caucasians.

Our new 2009 Equal Pay for Equal Work Poster establishes and communicates a nondiscriminatory compensation policy and informs employees of their rights and obligations under applicable laws. Posting this notice in the workplace demonstrates good-faith compliance and can help prevent frivolous claims from employees by informing them about legal reasons for pay disparities (such as performance, experience, skills, and qualifications).