The Mattacola Law Firm Blog

President Obama's First Action - Ledbetter Fair Pay Act

Posted in Law ::: February 2, 2009 9:11 AM

And you thought Ledbetter was only the name of a Pearl Jam Song? (Yellow Ledbetter for all you fellow Eddie Vedder fans.)  It all comes full circle here on The Mattacola Law Firm Blog - not only do we love to talk politics and labor and employment law but here is yet another example of fusion between the two. 

President Obama's first legislative act of his presidency was to sign the Lilly Ledbetter Fair Pay Act into law on January 29.  It is retroactive to may 28, 2007 and overturns the Supreme Court decision Ledbetter v. Good Year Tire & Rubber Co. by extending the filing deadlines for discriminatory employment practices.  In the Ledbetter decision, the Supreme Court had ruled that an employee claiming intentional pay discrimination had to file their administrative charge within 180 or 300 days (depends on interplay between state and federal law as to which applies) of the original discriminatory act.  

Now, under the Ledbetter Fair Pay Act - an employee is allowed to file that claim within 180/300 days of their last discriminatory paycheck.  It is easy  to see how this opens the door to a lot more claims for employers.  Employers now may be faced with defending a pay decision made many years prior by people who might not even be with the company anymore. 

Also, the Act also applies to age and disability discrimination, not just gender.  It does, however, seem to limit liability to back pay of two years preceding the filing of the charge.   What does all this mean for employers and employees?  We will see says the Zen Master, We will see.  More to come on this topic, for sure. 

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