The first new law passed by President Obama, the Ledbetter Fair Pay Act, threatens to significantly increase litigation, including class actions, against employers. During this (“LFPA”) briefing, we will explain the impact of the LFPA, which effectively eliminates time limits for filing charges of discrimination “affecting” pay, and promises to resurrect stale claims. The Act:
- Adopts the “pay check” rule. Plaintiffs can challenge compensation decisions made long ago, because the filing deadline now runs not from the date of the decision but from receipt of any compensation “tainted” by the decision, including amounts received post-employment.
- Applies to any “practice” that affects compensation and many do, including discriminatory performance evaluations, demotions, failures to promote and denials of transfers to more lucrative positions.
- Calls for retroactive application and appears to expand the class of persons with standing to sue.
We will discuss the many responsive steps your company can take NOW to defend against LFPA claims. These include:
- Evaluating decision-making processes and record-keeping practices to support legitimate compensation decisions and bolster defenses against LFPA claims.
- Considering whether to adjust severance pay policies to favor lump-sum rather than continued payments, and to enhance release and covenant-not-to-sue language.
- Conducting assessments to determine whether actual or perceived inequities in pay expose your Company to liability.
At this briefing we also will discuss the impact of a second bill, the Paycheck Fairness Act (“PFA”), the likelihood of its passage, its enormous potential impact. The PFA would expand punitive and compensatory damages, limit employer defenses, change collective action procedures and methods for detecting systemic compensation discrimination, and amend the Fair Labor Standards Act to prohibit employers from barring employees from discussing compensation.
Press & News:
Download the article, "Employment Litigation to Rise Under Ledbetter Act," that was recently published in Massachusetts Lawyers Weekly.
For questions please contact Tracy Dane Deeney at firstname.lastname@example.org
Registration & Breakfast
8:00am - 8:30am
8:30am - 10:00am
Who Should Attend:
This briefing is designed for members of the general counsel's office and HR Directors and staff.