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Last May, the U.S. Supreme Court decided the case of Ledbetter v. Goodyear, a ruling with far-reaching consequences for victims of pay discrimination. Our representatives in Congress have now turned their attention to this ruling with hopes of mitigating its effects: the House of Representatives has passed the Fair Pay Restoration Act, which would restore pre-Ledbetter law. The Senate will consider the legislation as early as next week. We ask that you editorialize in favor of quick Senate action to pass the Fair Pay Restoration Act. In Ledbetter v. Goodyear, a 5-4 majority held that any employee receiving unequal pay as a result of employer discrimination must file suit within 180 days of the initial decision resulting in that discriminatory pay, regardless of whether the discrimination continues to affect subsequent paychecks. The Court’s narrow interpretation makes it nearly impossible for victims of pay discrimination to have their claims considered -- much less rectified -- regardless of their employer’s ongoing violation of Title VII. Congress is taking steps to correct this ruling, but public action is crucial. To most fair-minded observers, the Ledbetter case was open and shut. Lilly Ledbetter had been working at Goodyear for 19 years when she discovered she was being paid less than her male colleagues. She then filed suit and won a jury verdict of more than $3 million. But instead of letting that ruling stand, the Supreme Court found that Ledbetter’s claim was untimely because it was not filed within 180 days of the employer’s initial decision to pay her less. This decision was handed down despite decades of preceding case law with no such requirement. The Court’s ruling not only denies relief to victims of ongoing pay discrimination but allows employers to pocket the windfall resulting from their continuing discrimination. This decision both ignores the impact of pay discrimination on workers, and sets precisely the wrong incentives for employers, encouraging them to hide pay discrimination for 180 days and then rewarding those who are successful by insulating them from further legal challenge. Appropriately, the House of Representatives has moved quickly to correct the Court’s ruling by passing The Fair Pay Restoration Act, which restores pre-Ledbetter law and makes it clear that the trigger for Title VII’s 180-day statute of limitations can include the payment of a discriminatory paycheck. The Senate, however, has not yet finished its work. Pay discrimination is a persistent, and often invisible, problem because victims often do not know that they are being paid less than their colleagues -- let alone that the pay disparity is due to discrimination. The Supreme Court’s Ledbetter decision, combined with the inherent secrecy of pay discrimination, can only result in a growing number of victims who become aware that they are experiencing pay discrimination after it is too late. The Ledbetter decision is inconsistent with Title VII’s broad mandate to ensure that workplaces operate free of discrimination, and it is inconsistent with our country’s commitment to fairness and equal pay for equal work. The legislation passed by the House, and pending in the Senate is a modest and targeted response to the Ledbetter decision. The Act would simply restore the law that existed in virtually every region of the country prior to Ledbetter. It leaves the statute of limitations intact at 180 days. It leaves in place restrictions in Title VII that deny plaintiffs any right to recover back pay for a period of more than two years before they challenge the discrimination. The legislation does, however, reinstate the principle that each discriminatory paycheck is a discriminatory act that resets the 180-day statute of limitations, thereby reestablishing the incentive for employers to review and correct discriminatory pay decisions. The legislation both considers the realities of the workplace and respects the intent of Congress to eradicate pay discrimination. The Fair Pay Restoration Act will fairly serve the goals of anti-discrimination law. The legislation will provide a clean and precise link between the charge filing deadline and an individual discriminatory paycheck, which can be easily documented. The Ledbetter ruling was significantly undermined the rights of working women and others who are subject to pay discrimination (such as minorities or senior workers). It was a terrible step backward for the country. Enacting the Fair Pay Restoration Act would make clear that the law means what it says and restore the tools necessary for individuals to effectively protect their rights. We hope you will editorialize in favor of this legislation. If you have questions, please call Co-chairs of the Minnesota Women Lawyer’s Public Policy Advocacy Committee, Susan Burns, Esq. (612.306.4143) or Stacy Lynn Bettison, Esq. (612.807.6337). Sincerely,
Link to PPA Committee Description and Goals
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