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Idea of the Day

February 3, 2009

Fair Pay Act becomes law

The Lilly Ledbetter Fair Pay Act of 2009 (named after the Goodyear Tire and Rubber Co. employee who sued too late for equal pay) was signed into law on January 29, 2009.  It allows employees to challenge pay discrimination by filing a claim within 180 days of discriminatory conduct (payment of discriminatory wages, with each paycheck treated as a discriminatory act).  They can recover back pay for up to two years prior to the filing.  Employers who identify and eliminate discrimination can avoid liability.  The new Act is a clarification to Title VII of the 1964 Civil Rights Act, which makes it illegal to discriminate in paying wages based on race, gender, national origin, and religion (employers with fewer than 15 employees may be exempt).  To help you determine whether you're paying workers fairly, visit the U.S. Equal Opportunity in Employment Commission.

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