On Thursday, January 29, 2009, President Obama signed legislation extending the timeframe in which employees may sue their employers under federal law for pay discrimination.  The Lilly Ledbetter Fair Pay Act of 2009 effectively provides that employees may file an administrative charge of discrimination with the U.S. Equal Employment Opportunity Commission alleging pay discrimination under the Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act up to 180 days (or up to 300 days in deferral states) after they receive any paycheck that they allege is discriminatory.  The new act likewise modifies the operation of the Americans With Disabilities Act of 1990 and the Rehabilitation Act of 1973 “to clarify that a discriminatory compensation decision or other practice that is unlawful under such Acts occurs each time compensation is paid pursuant to the discriminatory compensation decision or other practice, and for other purposes.”

The new Act effectively repeals the U.S. Supreme Court’s 2007 decision in Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618 (2007), which had held that the limitations period for filing an EEOC charge alleging pay discrimination under Title VII began on the date the pay was agreed upon, and not the date of the most recent paycheck.  The Lilly Ledbetter Act specifically notes Congress’ disagreement with that decision and that the new Act was passed specifically to overrule it. 

The new Act also provides that, in addition to the other relief authorized under the respective statutes amended, liability may accrue and an aggrieved person may obtain relief where the unlawful employment practices that have occurred during the administrative-charge filing period are similar or related to unlawful employment practices with regard to discrimination in compensation that occurred outside the time for filing a charge.

Finally, the new Act provides that its provisions take effect as if they were enacted on May 28, 2007, and apply to all covered claims of pay discrimination that were pending on or after that date. If you have any questions or concerns, please contact your Elarbee Thompson attorney for additional guidance.