Hey, this is Joe again. I think the Obama administration is going to keep the HR profession busy for some time to come.

When the Ledbetter Act was signed into law, at Management 2000 we started receiving numerous calls from our clients, some in a panic about what does this law means. The Lilly Ledbetter Fair Pay Act was signed into law in January in response to a ruling from the US Supreme Court in Ledbetter v. Goodyear Tire & Rubber. The court had ruled that compensation discrimination had to be filed within 180 days of the start of the discrimination – the new law reverses that decision.  The new law removes the time limit for filing a claim.  Additionally the new law extends who has the right to file a claim.  In the past only the employee could file a claim, with the new law anyone affected can file a claim which opens the door to all family members and others to file.

So what does all this mean to our clients? First of all proper documentation is critical on a going forward basis. As a result, at Management 2000 we have changed our employee record retention methods. Going forward we will retain those records indefinitely until such time that it is determined that there is a time limit. Throught the use of our Human Resources Information System, we are conducting reviews for our clients to see if there are situations that look like attention is needed.

In regards to pay disparities, just because there are pay disparities that does not mean there necessarily has been unlawful pay discrimination. Many defensible reasons, including experience, education, and job duties may result in pay disparities and would not be unlawful. Management 2000 is there to help because you have a business to run.