Congress Passes Controversial Lilly Ledbetter Fair Pay Act

On January 27, 2009, the U.S. House of Representatives, on a mostly party-line vote, passed the Lilly Ledbetter Fair Pay Act of 2009, making it easier for employees to sue for pay discrimination under Title VII of the Civil Rights Act of 1964 and various other employment laws. The bill, which passed the Senate earlier that day by a vote of 61-36, overturns a controversial 2007 U.S. Supreme Court decision. As the first bill signed into law by President Obama, its passage presages the likelihood of more, similarly dramatic, pro-employee changes in federal employment law in the coming year.

The decision that was eviscerated by the new Fair Pay Act, Ledbetter v. Goodyear Tire & Rubber Co., Inc., concerned the issue of when Title VII's statute of limitations begins to run in a pay discrimination case. As a general rule, an employee must file a Title VII charge within 180 or 300 days (depending on the state where the charge is filed) of the disputed employment decision.