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Avoid pay discrimination litigation with decentralized pay

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John Wilcox

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in Centerpiece,Employment Law,Human Resources

Here’s an important and surprisingly easy way to avoid potentially catastrophic class-action pay discrimination litigation: Decentralize pay and promotion decision-making to the greatest extent possible.

You may still face isolated lawsuits alleging discriminatory pay practices by a specific supervisor. However, that’s preferable to a potential class-action lawsuit on behalf of thousands of similarly situated employees across the company.

Class-action litigation is time-consuming, hard to manage, expensive—and potentially disastrous.

Recent case: A group of female KPMG associates, senior associates, managers, senior managers, directors and managing directors in the firm’s tax and advisory division sued, alleging sex discrimination under Title VII and the Equal Pay Act.

They sought court permission to represent all similarly situated female employees nationwide. If approved, the class would include 10,000 plainti...(register to read more)

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