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Lilly Ledbetter Fair Pay Restoration Act of 2009
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By Julie Juergens
On January 29, 2009, President Barack Obama signed the "Lilly Ledbetter Fair Pay Restoration Act of 2009" rejecting the decision of the Supreme Court of the United States in Ledbetter v. Goodyear Tire & Rubber Co. (2007), 550 U.S. 618, which held that the deadline for filing a Title VII compensation discrimination claim begins to run on the date of the first allegedly discriminatory pay decision.
In Ledbetter, the plaintiff argued that the issuance of each paycheck based on an allegedly discriminatory pay decision made outside of the statutory charging period (years in the past) resulted in a continuing violation of Title VII. The Supreme Court rejected this argument holding that each paycheck was a discrete act triggering a new limitations period. In the dissent, Justice Ginsberg argued that the unlawful practice under Title VII was the "current payment of salaries infected by gender-based (or race-based) discrimination," even if the "infection" occurred long before a charge of discrimination was filed.
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The new law adopts the argument set forth in the Ledbetter dissent, amending Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, and the Age Discrimination in Employment Act of 1967 to provide that the limitation for filing a charge commences when (1) a discriminatory compensation decision or other practice is adopted; (2) an individual becomes subject to the decision or practice; or (3) an individual is affected by an application of a discriminatory compensation decision or practice (including each time wages, benefits, or other compensation is paid).
Thus, the limitation period for filing a charge restarts each time an employee receives a paycheck or pension check tainted by alleged past discrimination. Employees may timely file a charge of discrimination upon receipt of the pay check or pension check even if the allegedly discriminatory pay decision occurred years or decades prior to the issuance of the check.
The law also potentially expands who may file pay discrimination claims beyond employees to "individual[s] affected by an application of a discriminatory compensation decision or practice." It will be up to the EEOC and courts to interpret this perceived expansion of possible claimants.
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The law also potentially expands who may file pay discrimination claims beyond employees to "individual[s] affected by an application of a discriminatory compensation decision or practice." It will be up to the EEOC and courts to interpret this perceived expansion of possible claimants.
The law is retroactive to May 28, 2007, the day before the Ledbetter decision, and applies to all pay discrimination claims pending on or after that date. ________________________________________________
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 ________________________________________________ Because current and former employees can now timely file charges based upon pay decisions made in the past, it is imperative that employers keep thorough and accurate records of all pay related decisions. Employers should also analyze their document retention policies to ensure that should they be sued (possibly decades after a pay decision was made) that sufficient documentation remains to justify the decision. |
