Ledbetter Fair Pay Act
On January 29, 2009, President Barack Obama signed the Lilly Ledbetter Fair Pay Act. The law was hailed as a victory for women's equality in the workplace and anti-discrimination in general. Some, though, feared it would have a disproportionately negative effect on small business.
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History
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Lilly Ledbetter worked as a supervisor at Goodyear Tire and Rubber from 1979 to 1998. At the end of that period she realized that she was the only woman in her position and that her pay was significantly less than all the other men, many of whom had less seniority.
Effects
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Ledbetter filed a workplace discrimination suit against her employer. The case went all the way to the Supreme Court, where it was decided in 2007 that Ledbetter was prohibited from suing because she did not file within 180 days of the first act of discrimination.
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Identification
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The Lilly Ledbetter Fair Pay Act (LLFPA) was the first bill signed into law by Barack Obama. It effectively nullified the holding in Ledbetter v. Goodyear by resetting the time period in which a discrimination suit for unequal pay could be filed each time an unfair paycheck was issued.
Features
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Under the LLFPA, someone who is subjected to illegal pay discrimination has a new 180 days to file whenever a discriminatory pay decision is adopted or when their actual pay is affected by such a decision or practice. This includes any paycheck that is affected by a discriminatory pay decision or practice.
Considerations
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While LLFPA was generally approved, some felt compliance with the act would be more costly for small businesses that are less able to afford legal advice. The cost of keeping the records necessary to defend against discriminatory pay suits also falls more heavily on the small business owner.
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References
Resources
- Photo Credit Joyce N. Boghosian
