The Lilly Ledbetter Fair Pay Act of 2009 was introduced by Congress to strengthen worker protections against pay discrimination. This pivotal law allows individuals who face pay discrimination to seek remedies under federal anti-discrimination laws.
The act specifies that discrimination based on age, religion, national origin, race, sex, and disability will “accrue” each time the employee receives a discriminatory paycheck. It was the first law signed by President Barack Obama and is one of several federal policies aimed at protecting workers’ rights.
Key Highlights
- Addresses wage discrimination based on age, religion, national origin, race, sex, and disability.
- Supplants a Supreme Court ruling that wage discrimination cases must be filed within 180 days from the initial discrimination occurrence.
- Resets the filing window, allowing cases to be filed within 180 days of the last discriminatory paycheck.
Deep Dive into the Lilly Ledbetter Fair Pay Act
The legislation reinstated protections removed by the Supreme Court in the Ledbetter v. Goodyear Tire & Rubber Co. case. It reaffirms the equal treatment regulations encapsulated in Title VII of the Civil Rights Act of 1964, making any discriminatory payment unlawful regardless of when the pay decision occurred.
Named in honor of Lilly Ledbetter, a former plant manager at Goodyear Tire & Rubber Co. in Alabama, the act stems from her unequal pay discovery and subsequent filing of a complaint with the Equal Employment Opportunity Commission (EEOC).
A Groundbreaking Case
In 1998, Ledbetter pursued an equal-pay lawsuit under Title VII of the Civil Rights Act, and initially won over $3.3 million in damages. However, the Supreme Court eventually overturned this decision, citing a missed 180-day filing window after the initial discriminatory decision, notwithstanding that Ledbetter discovered the disparity much later.
Justice Ruth Bader Ginsburg’s dissent in the case inspired actionable change, with legislators creating the bill to honor Ledbetter’s struggle. The act now allows grievances to be filed up to 180 days after the most recent discriminatory paycheck, effectively restarting the clock with each new paycheck.
If you suspect pay discrimination based on race, sex, or other grounds, you can file a complaint with the EEOC, with more details available on their website.
Contemporary Issues in Pay Discrimination
The Gender Wage Gap
Pay inequity remains a pervasive issue. In 2022, women earned just 84% of what men did, according to U.S. Census Bureau data. Women of color face even more considerable discrepancies, with Black, Latina, and Native American women earning markedly less compared to non-Hispanic white men. Though the fight for “Equal Pay for Equal Work” originated in the 1860s, transformative legislative acts didn’t pass until much later.
Salary History
Questions about salary history by prospective employers have perpetuated pay discrepancies. By August 2023, 22 states implemented laws prohibiting salary history inquiries, significantly benefitting pay equality. Research from Boston University School of Law revealed that bans on salary history inquiries could elevate women’s pay by 8-9% and raise Black workers’ earnings by 13-16%.
Impact of the Lilly Ledbetter Fair Pay Act
The law offers a significant advantage for those facing past pay discrimination, allowing them to contest current salaries based on discriminatory decisions throughout their career. Such protections ensure employees can challenge pay disparities long after they begin.
Was Lilly Ledbetter Compensated?
Initially, Ledbetter won backpay alongside compensatory and punitive damages. However, Goodyear’s appeal, based on the timeframe of her filing, resulted in no settlement for her.
Key Takeaways
The Lilly Ledbetter Fair Pay Act symbolizes yet another stride toward bridging the gender pay gap and other forms of pay discrimination. Though progress has been made, equal pay remains an ongoing battle requiring continuous advocacy and action.
The fair pay act is just one measure among many aiming to ensure fair compensation, regardless of an individual’s demographic characteristics. It fortifies our path toward broader workplace equality.
Related Terms: Equal Employment Opportunity Commission (EEOC), Equal Pay Act, Title VII, Civil Rights Act of 1964.
References
- The White House President Barack Obama. “From the Archives: President Obama Signs the Lilly Ledbetter Fair Pay Act”.
- Congress.gov. “S.181—Lilly Ledbetter Fair Pay Act of 2009”.
- U.S. Equal Employment Opportunity Commission. “Notice Concerning the Lilly Ledbetter Fair Pay Act of 2009”.
- Equal Employment Opportunity Commission. “Ledbetter v. Goodyear Tire & Rubber Co.”
- Cornell Law School. “Ledbetter v. Goodyear Tire & Rubber Co”.
- Cornell Law School. “Ledbetter V. Goodyear Tire & Rubber Co.”
- U.S. Equal Employment Opportunity Commission. “How to File a Charge of Employment Discrimination”.
- U.S. Census Bureau. “Income in the United States: 2022”, Page 10.
- AAUW. “The Simple Truth About the Gender Pay Gap”.
- National Women’s Law Center. “The Wage Gap by State for Native American Women”.
- U.S. Equal Employment Opportunity Commission. “The Equal Pay Act of 1963”.
- HR Dive. “Salary History Bans”.
- Boston University. “Perpetuating Inequality: What Salary History Bans Reveal About Wages”.
- Obama White House. “This Day in History: Equal Pay Trailblazer Lilly Ledbetter Turns 77”.
