Contemporaneous documentation of the reasons for pay decisions can help employers facing discrimination claims under the Equal Pay Act and Title VII, a recent federal court decision reinforces.
Lane v. Stericycle involved claims that an employer paid women that it promoted into a new position less than the men it similarly promoted. Reversing summary judgment for the employer, the Seventh Circuit emphasized that: (1) plaintiffs can identify pay comparators after they file their initial complaint; (2) delays in raising pay — even if eventually corrected — may be considered evidence of discrimination; and (3) employers must substantiate their “any factor other than sex” defense to justify the pay difference.
Employers should audit their pay practices, ensure timely adjustments, and maintain detailed records of compensation decisions. Analyzing Compensation for Equity and Risk, a course offered by the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, provides detailed guidance.
CWC members can read more here.