You know that a new Congress is getting off on the wrong foot when the first legislation it passes is payback to special interest campaign contributors like the trial bar. The House of Representatives recently passed two bills that have pleasant-sounding names, but have less to do with advancing the public good than lining the pockets of trial lawyers.
The Lilly Ledbetter Fair Pay Act and the Paycheck Fairness Act were rammed through the House without a single hearing this Congress. They would amend long-standing civil rights laws to generate an ever-expanding stream of revenue to lawyers through new lawsuits--not to correct any injustices or to implement more effective enforcement.
The Lilly Ledbetter Fair Pay Act would effectively abolish the statute of limitations for the vast majority of discrimination cases. The bill would overturn a carefully reasoned U.S. Supreme Court decision and permit claims to be filed many years after an alleged act of discrimination occurs. Proponents say that the law is necessary because people who do not know they are being discriminated against can't get their day in court.
But the bill ignores existing legal doctrine that protects unknowing victims and expands the law so that even people who know all the relevant facts and fail to exercise their rights for years or even decades could have a viable claim. It also appears to expand the class of individuals with standing to bring a claim.
A flood of new discrimination lawsuits could so clog the courts that legitimate victims might not be able to resolve their claims in a timely manner. There are already huge numbers of discrimination claims--the Equal Employment Opportunity Commission found that only about 5% have merit.
The Paycheck Fairness Act is a virtual bonanza for the trial bar. Despite adequate protections and remedies for sex discrimination, it would eliminate caps on punitive and compensatory damages, make such damages available even for unintentional pay disparities, eliminate employer defenses (e.g., paying workers salaries appropriate to their geographic market), and make it easier for trial lawyers to file large class actions.
As Congress debates legislation governing the workplace, it should have only one priority in mind--what's good for workers, businesses, and the economy, not what's good for rich campaign contributors who helped get them elected. In today's precarious economy, any measure that does not advance economic recovery and growth should be rejected. Congress should be shooting for full employment for hardworking Americans, not greedy trial lawyers. No country ever sued its way to prosperity.
Originally published 21 January 2009. Reprinted by permission, uschamber.com, January 2009.
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