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On January 29, 2009, President Obama signed the Lilly
Ledbetter Fair Pay Act into law. This Act overturns the Supreme Court's decision
in Ledbetter v. Goodyear, which had ruled that the 180 days statute of limitations
for filing an equal pay lawsuit under Title VII begins on the date the discriminatory
pay was agreed upon, not on the date of the most recent paycheck that was affected
by that decision.
The Act amends Title VII, as well as the Americans with Disabilities Act, the Age
Discrimination Act, and the Rehabilitation Act, to begin a new 180-day limitations
period each time a paycheck is issued. The Act states that discrimination in compensation
occurs not only when the discriminatory compensation decision or practice is adopted,
but also "when an individual is affected by application of a discriminatory compensation
decision or other practice, including each time wages, benefits, or other compensation
is paid, resulting in whole or in part from such a decision or other practice."
However, it should be noted that the Act does not change the limitation on the availability
of back pay to the two years preceding the filing of the charge.
The Act takes effect as if enacted on May 28, 2007, and applies to all claims of
discrimination in compensation that are pending on or after that date.
Click here to
read the full text of the Act.
Keesal, Young & Logan Employment Group
www.kyl.com
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