President Obama signed the Lily Ledbetter Act into law on Jan 29, 2009. The Act is named after the Alabama woman who sued Goodyear after discovering that her male colleagues in the same position as she was were earning substantially more than she was over her 19 years at the company. The Court ruled in her favor, but the US Supreme Court threw out her claim saying that she should have filed suit within 180 days of first finding this out. The Act will now remove the time limits and restart the 180-day clock every time a worker receives a paycheck, so that each paycheck is a violation of the law, not just the first one.

For HR, this means that all pay-related decisions, including performance appraisals, must be based on clear and objective guidelines, and all documentation must be kept up-to-date. Though it's always important to keep good records, we must now assume that neither the HR professional nor the decision-making manager will be around to be relied upon for personal recollection or documentation if a pay-related decision is challenged.

Here are some other recommended steps to take:

1. Check all employees' compensation packages. Anyone who performs the same job and has the same qualifications should be paid the same rates.
2. Train supervisors on what the law requires.
3. Review and update employment policies and handbooks to emphasize that discriminatory compensation practices are not allowed.
4. If you wish to reward compensation based on merit, offer a bonus instead of a pay increase. A bonus does not last, but a pay increase will be reflected in every paycheck, thus starting the 180-day clock.