SHRM Opposes Legislation In Letter to Members

In a letter to their members, SHRM voiced their opposition to several bills being debated in the House titled the Paycheck Fairness Act and the Ledbetter Fair Pay act. Acting as an update to the existing Equal Pay Act, the bills would create new mandates for employers as well as making it easier to suit for punitive damages. As a result of the nature of the bill, SHRM sent out a message urging members to contact their representatives to vote no based on the information below:

The Ledbetter Fair Pay Act – would eliminate the statutory time limit for filing pay discrimination claims.

The Paycheck Fairness Act – would prohibit an employer’s ability to justify paying different salaries to workers based in different geographic locations.

The House is scheduled to vote on both the Ledbetter Fair Pay Act and the Paycheck Fairness Act by the end of this week. SHRM is urging members to let your Representative know today that these bills go far beyond reasonable, balanced approaches to address wage discrimination.

Background

Ledbetter Fair Pay Act (H.R. 11) – The Ledbetter legislation is a congressional response to the U.S. Supreme Court’s May 2007 decision in Ledbetter v. Goodyear Tire & Rubber Co. In that case, the Court held that the 300-day time limit for filing a charge Title VII of the Civil Rights Act starts after the alleged unlawful employment action, and does not re-start a new upon receipt of each successive paycheck

The Ledbetter Fair Pay Act would effectively eliminate the uniform statue of limitations on pay discrimination claims and restart the time clock for filing such a charge with the EEOC upon the receipt of each successive paycheck. The bill would also re-start the time clock when a retiree receives an annuity check from an employer, and would thus keep employers liable to a discrimination claim potentially decades after an alleged act of misconduct. The legislation would amend the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Rehabilitation Act.

Paycheck Fairness Act (H.R. 12) – The Paycheck Fairness Act would amend the Equal Pay Act of 1963, which requires that jobs requiring comparable functions, skills, effort and responsibility in similar working conditions must compensate equally. Some stakeholders contend that the Equal Pay Act is not sufficient to remedy wage discrimination. While wage differentials remains an important workplace issue, debate continues over whether the differential is attributable to discrimination or the result of legitimate pay practices such as education, skill, experience, or tenure.

The Paycheck Fairness Act would limit an employer’s ability to justify paying different salaries to workers based in different locations with different costs of living. Second, the bill would lift the caps on compensatory or punitive damages for which employers would be liable, in addition to current liability for back pay. These damage penalties would apply to even unintentional pay disparities.

SHRM’s Position

SHRM adamantly opposes discrimination based on gender and believes any intentional misconduct against an employee should be promptly addressed and resolved. We also recognize that some court decisions have narrowed the scope of pay discrimination protections. As a result, we believe that it is appropriate and necessary for Congress to re-examine pay discrimination laws to determine if changes may be needed to restore protection under the law. However, SHRM opposes any efforts to eliminate the statute of limitations for filing claims or to limit legitimate employer pay practices. As a result, SHRM is opposed to both the Lilly Ledbetter Fair Pay Act and the Paycheck Fairness Act.

For more information on this bill visit GovTrack or the SHRM website.

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SHRM Opposes New Paycheck Fairness Act

In a letter to their members, SHRM voiced their opposition to a new bill being debated in the House titled the Paycheck Fairness Act. Acting as an update to the existing Equal Pay Act, the bill would create new mandates for employers as well as making it easier to suit for punitive damages. As a result of the nature of the bill, SHRM opposes the following aspects of the Paycheck Fairness Act:

* Promotes class action lawsuits against employers—The bill would require that employees “opt-out” of a gender discrimination class action, rather than the current law requirement that employees must give their written consent to join a class action. This will invariably increase the number of plaintiffs in class actions.

* Exposes employers to unlimited damages—The bill would lift the Equal Pay Act’s current limits on punitive and compensatory damages for which employers would be liable, in addition to current liability for back pay. Such damages would apply to even unintentional pay disparities. By exposing employers to potentially millions of dollars in damages, the bill would compel employers to settle wage discrimination claims, even in cases where no discrimination occurred.

* Restricts employer defenses—The bill would prohibit certain employer defenses for pay disparities. For example, the bill would eliminate an employer’s ability to justify paying different salaries to workers based in different locations with different costs of living.

* Encourages salary disclosures—The bill would effectively encourage employees to publicize their co-workers’ salaries by preventing employers from retaliating against employees who disclose or discuss the wages of other employees.

SHRM went on to urge the public(especially employers) to write their Representative calling for them to vote “No” on this bill. SHRM further explains their position by stating that “SHRM opposes all forms of unlawful
discrimination in the workplace, and believes any intentional misconduct against employees in any sector should be promptly addressed and resolved. Accordingly, SHRM believes the so-called Paycheck Fairness Act would be an unnecessary expansion of the Equal Pay Act. It would limit an employer’s ability to determine compensation for its workforce, and it could potentially punish well-intentioned employers”

For more information on this bill visit GovTrack or the SHRM website.

Avoid OSHA Fines: stay compliant

The Society for Human Resource Management reports that each year OSHA conducts 35,000 to 45,000 job site inspections. It is important to be prepared for such an inspection at all times as well as update policies and procedures regularly.

Who is Covered:

In general, the Act covers all employers and their employees in the 50 states, the District
of Columbia, Puerto Rico, and other U.S. territories. Coverage is provided either directly
by the federal Occupational Safety and Health Administration (OSHA) or by an
OSHA-approved state job safety and health plan. Employees of the U.S. Postal Service
also are covered.

The Act defines an employer as any “person engaged in a business affecting commerce
who has employees, but does not include the United States or any state or political
subdivision of a State.” Therefore, the Act applies to employers and employees in such
varied fields as manufacturing, construction, longshoring, agriculture, law and medicine,
charity and disaster relief, organized labor and private education.

The Act does not cover:

  • Self-employed persons;
  • Farms which employ only immediate members of the farmer’s family;
  • Industries in which other federal agencies, operating under the authority of other federal laws, regulate working conditions. This category includes most working conditions in mining, nuclear energy and nuclear weapons manufacture, and many aspects of the transportation industries;
  • Employees of state and local governments, unless they are in one of the states with OSHA-approved safety and health plans.

During OSHA inspections all employees are subject to review, as such it is necessary to instruct everyone on the required policies and procedures. Providing written instructions in easily accessible places is also important. More information on OSHA requirements can be found at the Department of Labor website. To access more information on these and other HR related issues, join HRSentry.