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

Barack Obama supports [new fair pay laws], notwithstanding that they would raise workforce costs in a recession….Whether or not the U.S. economy creates more income in the coming years, Congress is clearly determined to redistribute it.

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From the Wall Street Journal's “Trial Lawyer Bonanza: Off and suing with the 111th Congress."

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.

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.

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Chamber of Commerce’s Key Vote Alert.

The only ones who will see an increase in pay are some of the trial lawyers who bring the cases.

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Senator Orrin Hatch (R-UT) quoted in “How Dumb Are We? How long will women shoulder the blame for the pay gap?” in Slate.