Equal Pay Legislation Passes Senate

The Lilly Ledbetter Fair Pay Act is likely to be among the first pieces of legislation that President Barack Obama signs into law, signaling a possible increase in actions brought against employers by workers who may have experienced pay discrimination. Ledbetter, a former Goodyear Tire & Rubber plant supervisor, charges that for twenty years, she was paid less than males in similar jobs.

The Act, which the Senate passed at a 61-36 vote and was part of a broader pay discrimination package approved by the House of Representatives shortly after the New Year, resets the clock for filing a lawsuit. The current statute of limitations for filing is within 180 days of initial discrimination.
The Supreme Court ruled in 2007 that if passed, the Ledbetter bill would cause an avalanche of lawsuits from people who left companies decades earlier, placing an unreasonable burden on employers. But supporters contend that because payroll information is private, discrimination is often undetectable, especially over a short period of time. Ledbetter said that she was unaware of pay discrimination for 19 years at Goodyear and only became aware of it when a co-worker left her an anonymous note.

The Act, which will overturn the highest court's decision, will raise some big challenges for HR directors, who may be required to field a lot more questions about pay policies from employees. Records of pay decisions will require much documentation and may have to be retained for decades.

Ledbetter, who became an icon for pay equality and spoke at the Democratic convention in Denver, said that she would never see any money from the case, McClatchy Washington Bureau reported. "But if this bill passes," she said, "I'll have an even richer reward because I'll have known that my daughters and granddaughters, and your daughters and granddaughters, will get a better deal."

Due to the fact that the Senate made some tweaks to the version of the bill that Congress passed, it must pass the House again (which is pretty much a slam dunk) before it goes to the President's desk for signature.