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Employers need to retain compensation records, performance reviews, employee evaluations and other documents supporting wage decisions longer, in order to defend against a possible suit under the Ledbetter Fair Pay Act.

The Lilly Ledbetter Fair Pay Act of 2009 is now law. The Senate approved the bill on January 22, 2009 by a 61-36 vote, and President Obama signed it exactly seven days later. It was the first bill the new President signed into law.

The Ledbetter Act, named for Lilly Ledbetter, who filed a gender salary discrimination complaint, essentially allows complainants considerably more time than in the past to take such actions.

This new law means that employers must ensure that they are using an objective system to establish compensation. And, they must retain records of that system for many years, in case they are needed in a lawsuit.

When she worked for the Goodyear Tire and Rubber Company, it took her 20 years (more…)