Ledbetter Fair Pay Act - Stronger Employee Protection Laws Enacted

On January 29, 2009, President Obama signed into law the Lilly Ledbetter Fair Pay Act of 2009. This law, which was made retroactive to May 28, 2007, lengthens the time employees have to bring a claim for discrimination in compensation. It was passed to effectively overturn the Supreme Court’s recent ruling in Ledbetter v. Goodyear Tire & Rubber Co., which held that a worker must file claims asserting pay discrimination within 180 days of an alleged discriminatory pay-setting decision, even if the employee filed a charge within 180 days of the receipt of a paycheck which was discriminatorily reduced by that prior, unlawful decision. Under the new law, each new paycheck received will effectively reset the 180-day time period for filing a claim.

The Act amends the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 and modifies the operation of the Americans with Disabilities Act of 1990 and the Rehabilitation Act of 1973. Therefore, the Act applies to pay discrimination claims based on race, national origin, religion, age and disability.

The Ledbetter Act states that “an unlawful employment practice occurs, with respect to discrimination in compensation: (1) when a discriminatory compensation decision or other practice is adopted; (2) when an individual becomes subject to a discriminatory compensation decision or other practice; or (3) when an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from such a decision or other practice.”

If you have any questions regarding this new law or how it might affect you or your company, please contact us.

This publication is for general information only and is not intended as formal legal advice. If you have any questions or need assistance, please contact Curtis & Curtis, P.C.

Curtis & Curtis, P.C. is a full service law firm located in Jackson, Michigan providing superior legal services and advice to individuals, families and businesses throughout mid-Michigan since 1901.