A report released by the World Economic Forum this month revealed a consistent gender gap in areas including pay and opportunities for promotional advancement, despite increasing awareness of gender disparities in the workplace. Companies were assessed on several criteria, including rate of female representation, whether benefits such as paid family leave were offered, and whether plans for gender balance in pay or promotion were in place.

"The report is not surprising. Charges of gender discrimination claims continue to be one of the top three charges of discrimination filed with the Equal Employment Opportunity Commission (EEOC). In 2009, the charges comprised approximately 30% of all charges filed," noted Adeola Adele, Esq., Marsh's Employment Practices Liability Practice Leader.

"With the passing of the Lily Ledbetter Fair Pay Act of 2009 — which may require employers to defend claims that are decades old — companies have become more susceptible to litigation involving discriminatory compensation and promotion decisions," Adele explained. "Under the act, as long as the employee files an EEOC charge within 180 days of a discriminatory paycheck or other discriminatory decision– regardless of whether the actual pay decision was made decades ago — the charge will be deemed timely."

In addition to the act, the U.S. Senate may soon pass the Paycheck Fairness Act, which was passed by the House of Representatives on January 9, 2009. The Paycheck Fairness Act is intended to expand the remedies available under the Equal Pay Act, which prohibits wage disparity between men and women for work requiring equal skill, effort and responsibility under similar working conditions.

"We continue to urge clients to discuss legal implications of the act, as well as the pending Paycheck Fairness Act, with their employment law counsel," Adele cautioned. "To avoid or minimize any ramifications, companies should review their pay and promotional policies and practices to determine whether there are any patterns of inequity within any of the protected classes — and remedy such inequities as soon as discovered. All documents relevant to compensation and other employment-related decisions should be preserved in the event of a lawsuit challenging such decisions. Companies should also consider the role of employment practices liability insurance in managing this increasing exposure."