What Is the Lilly Ledbetter Fair Pay Act?

What Is the Lilly Ledbetter Fair Pay Act?

Let me explain the Lilly Ledbetter Fair Pay Act of 2009 directly: it's a federal law Congress passed to strengthen protections against pay discrimination. If you're facing unequal pay, this Act lets you seek remedies under anti-discrimination laws.

Here's the key point: the law states that discrimination based on age, religion, national origin, race, sex, or disability 'accrues' with every discriminatory paycheck you receive. This was the first bill President Barack Obama signed, and it fits into broader federal efforts to safeguard workers' rights.

Key Takeaways

You should know that the Lilly Ledbetter Fair Pay Act targets wage discrimination tied to age, religion, national origin, race, sex, and disability. It overrides a Supreme Court ruling that required filing claims within 180 days of when the discrimination began.

Instead, the Act resets that clock, allowing you to file within 180 days of your last discriminatory paycheck. Also, note that Lilly Ledbetter passed away in October 2024.

Understanding the Lilly Ledbetter Fair Pay Act

I want to walk you through how this Act restored protections stripped away by the Supreme Court's 2007 decision in Ledbetter v. Goodyear Tire & Rubber Co. It brought back safeguards from laws like Title VII of the Civil Rights Act of 1964, making it clear that any unfair payment is illegal, even if it stems from a past decision.

The Act honors Lilly Ledbetter, who managed a Goodyear plant in Alabama. She found out her male colleagues earned much more for the same work and filed a complaint with the Equal Employment Opportunity Commission (EEOC).

In 1998, she sued under Title VII for sex-based pay discrimination, and a jury awarded her back pay plus over $3.3 million in damages. But the Supreme Court later ruled that claims must be filed within 180 days of the employer's initial pay decision, even if you discover it later—meaning Ledbetter got nothing from Goodyear.

This Act bears her name because she sued Goodyear for paying her far less than male peers; she initially won but lost on appeal. The Supreme Court's decision, along with Justice Ruth Bader Ginsburg's dissent urging Congress to act, sparked activism viewing it as a blow to women and civil rights.

As a result, the bill was created, giving you the right to sue 180 days after the last pay violation, not just the first disparity. Essentially, each paycheck restarts the countdown. Lilly Ledbetter died on October 14, 2024, in Alabama, surrounded by family. Recently, a biopic 'Lilly' premiered, and she received Advertising Week's first Future is Female Lifetime Achievement Award.

Tip for Filing Complaints

If you think you're underpaid due to your race, color, religion, sex, national origin, age, or disability compared to coworkers, file a complaint with the EEOC. You'll find the full process on their website.

Pay Discrimination in 2024

Turning to current issues, let's look at the gender wage gap as a prime example of pay discrimination. In 2022, women's annual earnings were just 84% of men's, per U.S. Census Bureau data.

It's worse for women of color: Black women earn 64%, Latinas 55%, and Native American women 59% of what non-Hispanic white men make.

While 'Equal Pay for Equal Work' has been a rallying cry since the 1860s, Congress didn't act significantly until the 1963 Equal Pay Act.

Another factor is employers asking about salary history, which many experts say perpetuates discrimination and widens the gap. By August 2023, 22 states had banned some employers from this practice.

These bans appear effective: a Boston University School of Law study shows women's pay increases 8% to 9% under them, and Black workers see 13% to 16% boosts.

What Impact Did the Lilly Ledbetter Fair Pay Act Have?

The Act lets you challenge pay disparities from any point in your career, even if based on a discriminatory starting salary years ago. This means you can contest current pay for discriminatory reasons anytime, not just within a fixed period like before.

Did Lilly Ledbetter Receive Backpay?

In her initial trial against Goodyear, she won backpay and damages, but Goodyear appealed on the 180-day filing rule and prevailed, so she received nothing.

Was the Lilly Ledbetter Fair Pay Act Effective?

Laws like this help narrow the gender pay gap, but discrimination persists, suggesting more measures are needed.

The Bottom Line

The Lilly Ledbetter Fair Pay Act is one of several steps to stop pay discrimination based on age, religion, national origin, race, sex, or disability, but we've got more work ahead. Gaps remain, and this Act provides a key tool for those affected to pursue equal pay.