The Integrity News
"objective risk management news"
Vol. XVIII No. 2
March 24, 2009
March 4, 2009
"New U.S. legislation signed into law
by President Obama on Jan. 29, 2009,
effectively eliminates the statute of
limitations for individuals to file claims
of pay-discrimination based on race,
color, religion, sex, national origin, age,
"The Lilly Ledbetter Fair Pay Act of 2009
will have a profound effect on employers
because it will enable individuals to file
pay-discrimination claims for events that
occurred years earlier, exposing employers
to additional risks and making it potentially
more difficult to defend claims."
"Past actions cannot be undone. But, employers can
take immediate steps to reduce their present-day risk
of exposure to pay-discrimination claims -- identifying
potential inequities and targeting pay changes to
'level the field'."
"The risks of pay inequities are substantial. Damages,
particularly in class-action lawsuits, can total tens or
hundreds of millions of dollars."
"Organizations' reputations as employers are on the
line -- and so is their brand equity, as claims of unfair
pay practices can influence customer behaviors."
"The Ledbetter Act is likely to be followed by other
Federal legislation and/or actions that would further
increase employment practices risk. Further, in the
current economic downturn, workforce changes that
might be considered (such as layoffs, pay freezes,
and increased pay-at-risk) can create additional
challenges. It is more important than ever that
employers be informed about potential vulnerabilities
and that they act proactively to address issues."
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The Integrity Center, Inc.
to discuss topics anytime at (972) 484-6140.
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