The New Equal Pay Bill

In 2007 the United States Supreme Court ruled that a worker who is a member of a protected class must file a claim of discrimination within 180 days of a company’s initial decision to pay him less than another worker doing the same job.

On January 29, 2009, President Obama signed a bill that overturns the Supreme Court ruling. The Lilly Ledbetter Act, is now federal law.

That means each paycheck is a possible instance of discrimination, which extends the limitations period on wage discrimination claims to 180 days beyond the employee’s termination date.

Employers — be sure to review your pay and compensation procedures and records very carefully to ensure that any discrepancies in pay cannot be attributed to discrimination based on age, gender, race, ethnicity, sexual orientation, religion, or disability. And, if you have any questions, don’t hesitate to give me a call.

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