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Posted on: March 20, 2017 by Huntersure
Both the Obama and Trump administrations have devoted a portion of their campaigns to ensuring equal pay among men and women. While this is nothing new, the idea of pay transparency has come to light over the last few years, raising a lot of issues in terms of legality and equality for employees of all types. As this issue is receiving a lot of pressure on the state level, employers and lawyers should be aware that pay equity is not going away any time soon. As your clients assist their customers in navigating this uncertain legal future, ensure they are protected with a comprehensive Lawyer Professional Liability Insurance program.
The National Labor Relations Act (NLRA) prohibits discrimination against employees who discuss their pay with employers. However, this law has only applied to private employers and nonsupervisory employees.
Through Executive Order 11246, President Obama extended those protections to all employees and applicants of federal government contractors. In addition, beginning on Jan. 1, 2017, federal government contractors are required to provide to workers specific information on their paycheck, including hours worked, overtime hours worked, total pay and any additions or deductions made to employees’ pay, states Inside Counsel.
While it’s impossible to predict how the Trump administration will handle these laws moving forward, many states have already been proactive on addressing the issue. For example, numerous states have already made it a law that employers may not discriminate or prevent employees from speaking about their pay with others. What’s more, state law prohibits employers from taking any retaliatory actions against employees who discuss their compensation or issues regarding their compensation.
Moves are being made in the private sector, as well. The private industry is also adopting pay equity initiatives, making transparency a key focus of its initiatives. Last summer, more than twenty-eight companies signed the White House’s Equal Pay Pledge. In their supporting comments on the pledge, several employers specifically recognized the importance of pay transparency and equity, explains the article.
As knowledge continues to become available, women are in a better position to negotiate their pay, especially in comparison to their male counterparts. Therefore, employers and lawyers nationwide need to prepare themselves for the increase in claims that is likely to come. In addition, employers should speak with legal counsel for advice on how to manage pay transparency issues in their own workplaces. An equal pay audit should be conducted by legal counsel in order to ensure no biases are taking place, even unintentionally.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We aim to provide exceptional, creative, and personalized insurance solutions to all members of the business world. Whether you need Lawyers Professional Liability Insurance or any other professional coverage, give us a call at (646) 751-3030 to learn more about the professional liability products and protection we offer.
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