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
Removing the caps on damages sought by plaintiffs would likely prompt employers to protect themselves by purchasing expanded legal liability insurance. That added burden of insurance would increase the cost of doing business in the United States and may result in a reduction of employees’ wages and benefits and/or the hiring of fewer workers.
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.
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.
[Obama’s signing of the Ledbetter act is] a decision that could prove harmful to small business….Without limits, small businesses would be forced into the position of trying to defend an employment decision that occurred in the distant past…Because discrimination cases tend to rely on circumstantial evidence ('he said, she said' testimony), it would serve both parties best to review what occurred immediately after the event, not years later.
