Fulfilling a campaign promise, the first bill President Obama signed into law, the Lilly Ledbetter Fair Pay Act of 2009, extends the time for employees to file federal claims alleging unlawful pay discrimination and creates substantial potential liability and headaches for employers.
The Ledbetter Act is named after a former female employee who sued Goodyear after learning that male employees in similar positions were paid substantially more than she was over her 19 year career with the company. The legislation effectively overturns a Supreme Court decision and significantly extends the time employees can sue their employers for pay discrimination.
The issue began with the Supreme Court ruling in Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618 (2007). The court ruled that the statute of limitations for asserting a wage difference–discrimination claim began to run from the initial decision to pay a female worker less money than her male counterpart, even if the pay disparity continued for years.
Read the full article: Know Your Fair Pay Liability