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July 31, 2007

House Of Representatives Seeks To Overturn Ledbetter Decision

According to the National Association of Manufacturers, the U.S. House of Representatives could vote today on H.R. 2831, the Ledbetter Fair Pay Act. This bill would overturn the Supreme Court’s recent decision in Ledbetter v. Goodyear Tire & Rubber Co., Inc., and allow claims for wage discrimination based on decisions outside the 180/300 day limitations period for filing timely EEOC charges.

Here is a summary of the bill from Maryland Chamber member Shawe Rosenthal, LLP’s June E-Update:

In Ledbetter v. Goodyear Tire & Rubber Co., Inc., the U.S. Supreme Court held that individuals must file claims for pay discrimination under Title VII within 300 days of the allegedly discriminatory act that caused the pay to be depressed. The Court rejected the plaintiff’s argument that discriminatory pay claims under Title VII should be governed by the “paycheck accrual” rule followed under the Equal Pay Act where each paycheck is treated as a new violation.

The “Ledbetter Fair Pay Act,” would overturn the Supreme Court’s decision by adopting the “paycheck accrual” rule for claims of discriminatory compensation under Title VII, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Rehabilitation Act. In addition, the Bill would amend all four statutes to permit an individual to recover damages 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.” It appears that any action relating to compensation that has any relation to a discriminatory decision made in the past (no matter how long ago) could potentially result in a new claim.

The U.S. Chamber of Commerce and National Association of Manufacturers are working to defeat this bill. In a key vote letter to members of the House, NAM’s Senior Vice President for Policy and Government Relations, Jay Timmons, said, “H.R. 2831 would not only reverse Ledbetter but would overhaul key portions of major civil rights laws. The bill would severely weaken, and effectively eliminate, the statute of limitations for filing discrimination claims. It would grant standing for the first time to not just employees but those potentially “affected by” discrimination. It would broaden the bill’s reach to cover unintentional (disparate impact) discrimination suits and allow retirees to file claims over actions that took place decades earlier.”

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