How Employers Should Comply with the Fair Pay Act
The Fair Pay Act will likely increase litigation because employees can file claims against their employers for every paycheck based on an "unlawful employment practice." Employers should consider some of the following ways to minimize violating the Fair Pay Act:
Review All Compensation Decisions: To ensure that supervisors do not violate the law. Employers could also review compensation statistics to see if any differences exist across sex, race, or ethnic backgrounds. Employers should also consider implementing a new review system to see that decisions comply with the Fair Pay Act.
Create Objective Guidelines for Compensation Decisions: To show that decisions are uniform and not based on classification such as sex, race, or ethnic backgrounds.
Retain Compensation Documents Longer: Employers likely will need to retain compensation related documents for as long as an employee receives any form of payments or benefits, i.e. 401(k). Employers should consider using electronic storage of such records.
Finally, we’ll conclude this article with a summary of what we’ve discussed and some additional considerations.