Compliance
Discriminatory Compensation Decision
An employer's decision or practice that results in unequal pay based on a protected characteristic.
Definition
Under the Lilly Ledbetter Fair Pay Act, a 'discriminatory compensation decision or other practice' refers to any employer action, policy, or system that leads to disparities in wages, benefits, or other forms of remuneration based on an individual's protected characteristics such as race, color, religion, sex, national origin, age, or disability. The Act clarifies that an unlawful employment practice occurs not only when such a decision is adopted, but also each time compensation is paid pursuant to that decision.