Company’s pay equity study is not privileged, court rules
A cautionary tale for employers. EDITOR’S NOTE: Our Affirmative Action Alert blog has been re-titled EEO Compliance Dispatch . Many companies proactively analyze employee compensation to ensure that any disparities based on race and sex can be explained. This practice is advisable for many reasons: To eliminate or reduce potential liability for pay discrimination by identifying and correcting unexplained pay differentials. To increase employee morale and trust in the organization. To demonstrate accountability to shareholders and others. To develop robust compensation strategies and programs. Pay analyses that are prepared by or for counsel for the purpose of obtaining legal advice are generally covered by the attorney-client privilege. This privilege may be waived, however, if the confidentiality of the communication is not maintained by the client. One drawback to conducting a preventive pay equity analysis – even with the involvement of an atto...