The Ledbetter Fair Pay Act
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The Ledbetter Fair Pay Act

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A brief overview of the Ledbetter Fair Pay Act

A brief overview of the Ledbetter Fair Pay Act

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    The Ledbetter Fair Pay Act The Ledbetter Fair Pay Act Presentation Transcript

    • The Ledbetter Fair Pay Act
    • Background
      • Signed into Law January 29, 2009
      • Retro active to May 28, 2007
      • Designed to reverse the Supreme Court decision in 2007 case Ledbetter v. Goodyear Tire & Rubber
    • History of the Case
      • Lilly Ledbetter was unaware that men were being paid more than her…as a result of a biased evaluation
      • Filed a complaint with EEOC against Goodyear after she left them.
      • Lost her case because she filed too late
      • Supreme Court said you must file within 180 days of the first paycheck in which the action occurred.
    • Summary of the Law
      • The Ledbetter Act extends the current 180 day statute of limitations for pay discrimination to effectively as long as the alleged pay or benefit disparity continues (i.e. each pay check)
      • The Act also amends Title VII, ADA and ADEA which means the Act goes beyond gender discrimination and applies pay discrimination to all aspects of Title VII (race, religion, national origin, disability or age)
    • Major Provisions of the law
      • Each paycheck restarts the time clock for an employee to file a claim either 180 or 300 days.
      • Pay discrimination claims may be filed even after an employee retires and the time clock for a retiree will restart with each annuity or retirement check.
      • Certain family members who were affected by the alleged discrimination may become plaintiffs and file a suit even after the aggrieved employee is deceased.
    • What to expect
      • An increase in pay discrimination claims and class action suits.
      • Challenges in defending actions in the past potentially without documentation, witnesses or decision makers available.
    • Proactive steps
      • Review compensation philosophy and administration.
      • Limit individual discretion.
      • Ensure that all compensation decisions are objectively supported and thoroughly documented and records are retained.
      • Develop and maintain consistency in compensation administration.