On January 29, 2009 President Obama signed the Lilly Ledbetter Fair Pay Act.  This law overturns the 2007 U.S. Supreme Court decision in Ledbetter v. Goodyear Tire which held that a gender discrimination claim arises at the time when the discriminatory pay rate is determined, and not each time a paycheck is issued.  (2007) 550 U.S. 618.  In that case, Ledbetter’s pay discrimination claim was barred by the statute of limitations since she failed to file her claim within 180 days of the discriminatory act (i.e., when the pay rate was established nineteen years earlier).

Under the new law, the statute of limitations for claims of pay discrimination is extended in that a new claim now arises each time a discriminatory paycheck is issued.  Note that this law is not limited to gender discrimination claims, but applies also to discrimination claims based on factors such as age, race, religion, national origin, etc.
Employers should review their pay practices and pay rate decisions in order to ensure that they are not engaging in illegal discrimination.  If you have any questions about this new legislation, about its impact on your business, or about discrimination in general, please contact us.