Pay Practices May Face Scrutiny with Rapid Hiring

(from Venable) In response to the recent worker shortage, many employers have reassessed their recruiting practices, increased wages, implemented hiring bonuses, or installed flexibility incentives to entice workers. Despite these enhanced incentives, many industries continue to report labor shortages. As employers rush to hire more employees, they may be scrutinized for pay inequities. To protect against any unwitting violations of the law, it is crucial that employers understand the requirements of the Equal Pay Act and its state law analogues, and effectively monitor for any policies or practices that may violate not only the EPA but also state and local statutes enacted to address the gender pay gap. Some of the tools available to employers, such as pay equity studies, must be used carefully in coordination with counsel to ensure that all applicable legal privileges are maintained. Otherwise, the documents and communications associated with such studies or monitoring can become fodder for plaintiffs' counsel in discovery.

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