The Lilly Ledbetter Fair Pay Act of 2009 amends the Civil Rights Act of 1964, Americans with Disabilites Act of 1990 and Age Discrimination Act of 1967 to declare that an unlawful employment practice occurs when: (1) a discriminatory compensation decision or other practice is adopted; (2) an individual becomes subject to the decision or practice; or (3) an individual is affected by application of the decision or practice, including each time wages, benefits, or other compensation is paid. This law allows recovery of back pay, for up to two years preceding the filing of the charge.  This back pay provision is what many HR practitioners and lawmakers objected to.  The analysis, discovery and finding of factors that determine pay decisions from the past will be a serious challenge for employers. 

 The Senate and House have approved this legislation and is expected to be signed soon by President Obama. 

This legislation will not change the way responsible employers compensate employees but it will mean HR will need to audit the compensation decision documentation and make sure it is clear and accessible.  Perhaps a review of compensation forms should be on HR’s long list of things to do in 2009.   

 Other looming pay related legislation:  The Paycheck Fairness Act and The Fair Pay Act which addresses equal pay for comparable skill, effort, responsibility and working conditions.  Comparable worth was a big topic in the 80’s and requires employers to establish a structured job evaluation system to measure job worth to determine comparability.  This is different than equal pay for equal work which is already the law of the land since 1963.   Currently The Fair Pay Act is “dead” but I’m watching for its resurrection.