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Betsy Davis |
On January 22, 2009 the United States Senate passed the Lilly Ledbetter Fair Pay Act ("Ledbetter Bill") by a vote of 61-36 which, if it becomes law, will override the Supreme Court's decision in Ledbetter v. Goodyear Tire and Rubber Co., 550 U.S. 618 (2007). The Ledbetter Court held that in a Title VII pay discrimination case the statute of limitations begins to run when an allegedly discriminatory pay decision is made and communicated to an employee. The Court specifically rejected Lilly Ledbetter's argument that the statute of limitations restarts each time the employee receives a paycheck that reflects an allegedly discriminatory pay decision.
The Ledbetter Bill makes it clear that each discriminatory paycheck is a new act of discrimination that resets the 180-day (300-day in Virginia) limit to file a claim. Not only does the Ledbetter Bill affect the statute of limitations applicable to Title VII claims, it amends the statute of limitations under the Age Discrimination in Employment Act ("ADEA"), Americans with Disabilities Act ("ADA") and the Rehabilitation Act of 1973. The Ledbetter Bill makes the statute of limitations retroactive to January 28, 2007.
The Ledbetter Bill now goes back to the House of Representatives for a final - and what is expected to be quick - vote before it is sent to President Obama for his signature. If the legislation passes, employers should be mindful that employees who allege a discriminatory pay practice may bring suit years after a pay decision was made. If discrimination is shown, however, plaintiffs will be limited to a recovery of back pay for a period of no more than two (2) years before they challenge the discrimination.
For more information regarding the Ledbetter Bill or other issues related to employment law, please contact Betsy Davis (804) 697-2035.
