labor lawAdivision of labor law center

On January 29, 2009, President Obama signed the Lilly Ledbetter Fair Pay Act of 2009. The fact that this act was Obama’s first bill signed into law, may signal a busy year ahead for labor legislation.

 

In a statement before the signing, President Obama said, “Lilly Ledbetter did not set out to be a trailblazer or a household name. She was just a good hard worker who did her job — and she did it well — for nearly two decades before discovering that for years, she was paid less than her male colleagues for doing the very same work. Over the course of her career, she lost more than $200,000 in salary, and even more in pension and Social Security benefits — losses that she still feels today.”

 

Lilly Ledbetter worked at Goodyear Tire and Rubber Company for two decades before learning that she had consistently been paid less than her male colleagues for the identical job. She filed suit and pursued it all the way to the Supreme Court. The Supreme Court ruled that Ledbetter had only 180 days to sue the company for pay discrimination after the pay decision was made. The court upheld this ruling, even though it was more than a decade before Ledbetter learned of the pay disparity through an anonymous tip.

 

The bill had passed the Senate on Thursday, January 22 by a vote of 61 to 36.

 

The President said, “I intend to send a clear message: That making our economy work means making sure it works for everyone. That there are no second class citizens in our workplaces, and that it’s not just unfair and illegal — it’s bad for business — to pay someone less because of their gender, or their age, race, ethnicity, religion or disability.”

 

Ledbetter was present at the signing ceremony, where President Obama said he took this act for his daughters and all who come after them. President Obama then affixed his distinctive left-handed scrawl to the act.

 

Both SHRM and the U.S. Chamber of Commerce opposed the bill, which they said could have unintended consequence year from now. Supporters point out that the consequences only apply to employers who practice discrimination based on sex.

 

A defeated amendment proposed by Senator Kay Bailey-Hutchinson of Texas would have limited the employees ability to file a suit to 180 days after the employee learned of the wage disparity.

 

A defeated amendment proposed by Senator Arlen Specter would have limited the Fair Pay Act to paycheck discrimination, not promotions, training, vacations, benefits or other perks. 

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