Employer Law Report

Tag Archives: pay

The OFCCP strikes, puts State Street’s pay inequity problem out on Front Street

Well known asset management company State Street Corporation will pay $5 million to settle allegations of pay inequity raised by the Office of Federal Contract Compliance Programs (OFCCP) in an audit. OFFCP alleged that the company paid female executives less than men and black executives less than whites at its Boston headquarters. The landmark settlement agreement is the largest back pay settlement collected by OFCCP since 2015.

By way of background, OFCCP audits federal contractors and subcontractors for compliance with workplace affirmative action and nondiscrimination requirements. OFCCP conducted a compensation analysis of State Street’s downtown Boston office in December 2012. …

‘Tis the Season for Holiday Workplace Issues. Day 4 – Holiday Pay and How Not to Get Scrooged by the FLSA

Many employees believe they are entitled to holiday pay, even if they do not work on the holiday. This is not the case. In fact, neither the Fair Labor Standards Act (“FLSA”) nor most state laws, including Ohio, require a private employer to pay hourly employees for not working on holidays (federal or otherwise).

Holiday pay is typically considered a fringe benefit and is a matter of agreement between an employer and an employee (or the employee’s union representative). However, please note that this does not apply to salaried, exempt employees who get paid for holidays, even ones they do …

House to Vote on “Ledbetter” and “Paycheck Fairness” Acts

Today the U.S. House of Representatives is expected to vote on and pass two controversial bills affecting employers. Both bills have the strong support of Democrats in Congress and the incoming Obama administration.

The “Lily Ledbetter Fair Pay Act,” which was defeated in 2007 due to a Republican filibuster in the Senate, would effectively and drastically extend the statute of limitations for discrimination claims related to disparate pay practices. Currently, employees are required to sue within 180 days (or, in certain circumstances, 300 days) after alleged discrimination takes place under federal law.   The Act would permit employees to sue for an unlimited …

Deductions From Pay Can Be Dangerous!

Are you making improper deductions from employees’ pay without even realizing it?  Have you ever had a manager who is consistently late and you want to impose a fine equal to 15 minutes of pay for each occurrence?  Or an hourly employee who loses or destroys company tools or equipment and you want them to pay you back for what they broke?  What about an employee who resigns while he or she has a negative leave balance? In all these situations, making a deduction from pay makes logical sense.  But these deductions may be contrary to wage and hour law.

First, …