Paycheck Accrual Rule

The 'paycheck accrual rule' is a critical feature of the Diane B. Allen Equal Pay Act, significantly impacting the statute of limitations for filing claims. This rule stipulates that each instance an employee receives a paycheck reflecting a discriminatory compensation decision or practice constitutes a separate and new violation of the Act. Consequently, the statute of limitations for filing a claim effectively restarts with each discriminatory paycheck. This means that even if the initial discriminatory decision occurred many years ago, an employee can still bring a claim as long as they have received a discriminatory paycheck within the statutory period, which is six years under this Act. This rule provides a powerful tool for employees to challenge long-standing pay disparities and ensures that employers cannot escape liability for ongoing discriminatory practices.