Legislation Alert – House [and then the Senate] Pass The Fair Pay Act

The U.S. House of Representatives  passed “The Lilly Ledbetter Fair Pay Act of 2009″ on January 9, 2009.   On January 22, 2009, the Senate passed its version of the Lilly Ledbetter Fair Pay Act.  The House and Senate will have to reconcile the two different versions of this bill  and then send it to President Obama, who is expected to sign it.  This bill will likely become law before the end of February, 2009.  This act would amend Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment act, by expanding the time limit that an individual has to file an employment discrimination claim.  The amendment would provide that the time for filing a discrimination claim would start to run after the adoption of a discriminatory compensation decision or when the individual becomes subject to such decision or practice or upon each additional application of that decision or practice.   This last factor is known as the “paycheck rule”, which will mean that each time an employee receives a new paycheck that reflects what they believe to be discriminatory action under Title VII or the ADEA, the time for filing a charge will begin anew.   This change will also apply to claims for violations of the ADEA, ADA and the Rehabilitation Act, if this bill is signed into law in its current form.

This new Act, if it becomes law, will reverse the 2007 U.S. Supreme Court decision which held that the time for filing an employment discrimination charge by employees (including Ms. Lilly Ledbetter) did not begin upon receipt of each new paycheck.  The Senate is expected to consider this bill next week.