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Be ready to explain male/female pay disparity—dating back to the time salaries began to diverge

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in Compensation and Benefits,Human Resources

Since Congress passed the Lilly Ledbetter Fair Pay Act to overturn the Supreme Court’s Ledbetter decision, employers have again been in the position of having to defend paying men and women differently—and sometimes that means going back many years, to the time when pay scales began to diverge.

That’s because courts are ruling that employers have to defend why they decided to pay differently at the time, not by today’s standards.

In other words, if you can’t show a court that the decision you made years ago was legal under the Equal Pay Act (EPA), the employee may win.

Here’s why: The EPA outlaws the payment of unequal wages on the basis of gender. To win an EPA case, employees have to show that: (1) their employer pays different wages to employees of the opposite sex; (2) the employees performed equal work in positions requiring equal skill, effort and responsibility; and (3) the jobs are performed under similar...(register to read more)

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