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Navigating Pay Equity

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Navigating Pay Equity
Navigating Pay Equity:
Developments in Legislation
March 24, 2014

Agenda
• Historical legislation
• Lilly Ledbetter
• Paycheck Fairness Act
• Impact and advice for HR professionals

Equal Pay Act (EPA)
• Passed in 1963 as an amendment to the FLSA
• Requires equal pay for substantially equal work
▫Skill, Effort, Responsibility, Working
Conditions

• Gender claims only
• Not required to show discriminatory intent EPA - Affirmative Defenses
• Seniority system
• Merit system
• System which measures earnings by quantity or quality of production; or
• Any other factor other than sex
(FOS)

Other Legislation
•Title VII - Civil Rights Act 1964
▫Bennett Amendment

• Age Discrimination in Employment
Act of 1967 (ADEA)
• Americans With Disabilities Act of
1990 (ADA)
• They ALL prohibit discrimination in compensation. Lilly Ledbetter
• Worked 19 years as a production supervisor for Goodyear Tire &
Rubber Co.
• Received anonymous note listing her salary and the salaries of the men in the same job
• Filed EEOC complaint in March
1998
▫Claimed pay discrimination under

Court Proceedings
• Sued Goodyear in District Court & won
• Appeals court later ruled she missed 180 day window from the pay decision to file complaint • Validated by Supreme Court in 2007:
Ledbetter v. Goodyear Tire & Rubber Co.
▫ Overturned long-standing paycheck accrual rule ▫ Claimants cannot focus on current pay because Title VII itself focuses only on discrete pay decisions

Lilly Ledbetter Fair Pay Act - 2009
• First bill signed into law by President Obama
• Unlawful discrimination occurs when:
1. “a discriminatory compensation decision or other practice is adopted,
2. an individual becomes subject to a discriminatory compensation decision or other practice,

3. an individual is affected by application of a compensation decision or other practice , including each time wages, benefits, or other comp. is paid resulting in whole or in part from such a decision

Lilly Ledbetter Fair Pay Act - 2009
•
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