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

When disagreements and disputes in the workplace fester and potential damage amounts increase, compromise and cooperation become far more difficult. Ms. Ledbetter claimed, however, that she was entitled by a special ‘paycheck rule’ applicable only to claims of alleged pay discrimination, to sleep on her rights for decades before raising her concerns with the EEOC.

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Neal D. Mollen, counsel for Chamber of Commerce, testimony, House Committee on Education and Labor.

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.

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.

[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.

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Chamber of Commerce’s executive vice president for government affairs, R. Bruce Josten.