Connecticut follows Congress' lead and enacts new Ledbetter-like law

In Connecticut, the labor law provides that an employee, a group of employees or the Labor Commissioner may initiate a civil action for pay discrimination when an employee of one gender is paid less than employees of another gender under similar conditions and with equal skills, effort and responsibilities. When violations are found to occur, a court may award back pay and compensatory damages to the aggrieved employee. The court may also award punitive damages, but only when the violations are intentional or committed with reckless indifference to the employee’s rights. Although the Labor Commissioner is no longer allowed to seek attorneys’ fees, employees continue to be permitted to seek them. Employees can also seek equitable relief where violations have occurred.  

Under the new law, discrimination in pay occurs when a discriminatory compensation decision or practice is adopted; when an individual becomes subject to a discriminatory decision or practice ; or when an individual is affected by the application of a discriminatory decision or practice. Like the Lilly Ledbetter Fair Pay Act, Connecticut’s new act allows for the statute of limitations to restart each time wages or other compensation are paid. In other words, every single time the employee gets a paycheck, the statute of limitations period starts over again.

Additionally, the new law: 

• Limits the number of available defenses employers may raise;

• Makes it clear that gender does not have to be the sole factor in the discrimination for gender wage discrimination to have occurred;

• Expands whistleblower protection to include those who testify or assist in a gender wage proceeding;

• Extends the deadline for filing a wage claim from one year to two years and, in some cases, three years where the violation is deemed intentional or committed with reckless indifference; and

• Imposes $300 in penalties for each violation of the Personnel Files Act. The penalties are imposed by the Labor Department and the Attorney General is empowered with the authority to initiate a civil action to recoup any unpaid penalties. Collected penatlies are then used to fund enforcement.

In light of the new law, employers must re-evaluate the way they make compensation decisions. In doing this, employers should develop objective, measurable criteria that are applied consistently and uniformly in each job classification. Criteria for making compensation decisions may be based on seniority, merit, quantity or quality of work, or education, training or experience. It is equally important to make sure managers are trained in the criteria to be used if they are making adjustments in employees’ pay. Finally, employers should take a look at their record retention policies to make sure they comport with the new state law. Records may now need to be kept significantly longer.  

For more information about this new law, or for bringing your business into compliance with it, please contact Amy B. Royal, Esq. at (413) 586-2288 or aroyal@rkesq.com