Lily Ledbetter Fair Pay Act

Lily Ledbetter Fair Pay Act

The Lily Ledbetter Fair Pay Act renews a worker’s right to sue for wage discrimination within six months of every unfair paycheck, not just the first.  The legislation was spurred by the case of Lily Ledbetter, a lifelong employee of Goodyear Tire and Rubber Company, who became aware that the company had, for decades, consistently paid her less than her equivalent male colleagues. A jury found her employer guilty of pay discrimination, but the conservative wing of the Supreme Court overturned the case, 5-4, because she hadn’t sued within 180 days of the date of the first discriminatory paycheck. (This would have been impossible, of course, because Ledbetter only became aware of the injustice after it had been happening for decades.) The Act overturns the Court’s decision. 

Cry Wolf Quotes

It's opening the door to a lot more claims. That means more burdens on employers in terms of in-house costs, keeping more records and outside legal fees. It's going to be costly for businesses.

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Beth Milito, senior executive counsel for the Small Business Legal Center at the National Federation of Independent Business (NFIB), Inc.Com.

Unfortunately, these bills will do little to prevent actual instances of unlawful discrimination, but they will open the flood gates to unwarranted litigation against employers at a time when businesses are struggling to retain and create jobs.

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Jeri G. Kubicki, NAM’s Vice President Human Resources Policy, The National Association of Manufacturers (NAM). Letter to Congress.

As a small-business owner, you are most likely too busy to be able to take the time to carefully review the Ledbetter Fair Pay Act of 2007, a complicated, vague bill that will have harmful effects on small business. As you'll soon learn, the Ledbetter Fair Pay Act of 2007 is anything but fair to small business. Tell your senator to vote ‘NO’ on this erroneous piece of legislation.

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From an NFIB letter to their members.

The new law would pretty clearly restart the time clock for filing the claim when an employee receives a retirement benefit, a pension benefit, even an (employee stock ownership plan payment). In doing so, the Ledbetter Act exposes employers to endless liability…[it is an] unprecedented expansion [of employment law].

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Michael Layman of the Society for Human Resource Management (SHRM), Inc.Com.