Federal ‘Fair Pay Act’ overturns court, weakens employers

(Aug. 1, 2007) Federal lawmakers are considering legislation that would overturn a recent Supreme Court decision on pay discrimination, making employers more vulnerable to claims — possibly years after the discrimination allegedly occurred.

The high court ruled that a plaintiff who alleges pay discrimination must file a claim within a statutory period of either 180 or 300 days after a decision to discriminate is made, depending on the state.

But the Ledbetter Fair Pay Act (H.R. 2831), named after the case’s plaintiff, Lilly Ledbetter, would relax the statute of limitations for pay discrimination cases so that the first instance of discrimination would be determined on a case-by-case basis. That would make it much harder for employers to anticipate and resolve the cases.

While the House approved the bill this week and the Senate is working on similar legislation, President Bush has vowed to veto it.

Statutes of limitation are important in ensuring that employees report discrimination quickly. Employers also can defend themselves adequately, while the evidence is fresh.

H.B. 2831 also would:
• Apply the paycheck rule to “benefits or other compensation,” allowing a discrimination claim to be made by a retiree over actions occurring years earlier.
• Expand the law to allow family members and others “affected by” alleged discrimination to file claims
• Increase substantially employers’ legal and paperwork costs

CBIA members should contact their congressional representatives to urge rejection of this measure.

For more information, contact CBIA’s Kia Floyd at 860-244-1931 or floydk@cbia.com.

CBIA Action Center

Comment on this story or issue to your state legislators!