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
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].
[M]any legitimate concerns have…been raised about this bill, and the hasty attempt to pass it without considering these important issues only heightens the Chamber's concerns that this legislation would dramatically expand the number of frivolous and otherwise questionable cases that could be brought against employers. The Senate would be well served to further examine this bill and properly consider alternative approaches through the Committee process.
By applying the paycheck rule broadly, it is possible that claims could be filed decades after an allegedly discriminatory act occurred. By applying the rule to pension annuities as well, a cause of action could arise decades after the individual ceased to work for the employer….Subjecting employers to such claims would literally lead to an explosion of litigation second guessing legitimate employment and personnel decisions.
This bill would allow an employee to bring a claim against an employer decades after the alleged initial act of discrimination occurred. Trial lawyers, you can be sure, are salivating at this very prospect.
