Equal Pay for Women on New President's Agenda
Jan 2009
(Livingston, NJ) As president-elect Obama's train steamed in to Washington, D.C. for the inaugural, one travel companion appeared particularly gratified by the successful end of the long road to the presidency.
In her role as plaintiff, Lilly Ledbetter lost her employment discrimination case before the U.S. Supreme Court in 2007. Ledbetter accused Goodyear of sex-based pay discrimination. At issue was the time limit for filing. The Court held that she should have filed her claim within 180 days of "the alleged unlawful employment practice" - the initial decision to pay her less than men performing similar work. The Court rejected the argument that each paycheck was a violation of the law.
But a week before the new president's swearing in, the House of Representatives voted 247-171 in favor of the Ledbetter Fair Pay Act, which would amend Title VII of the Civil Rights Act of 1964, the Equal Pay Act of 1963, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Rehabilitation Act of 1973.
President Obama has now signed the bill into law, which codifies Ledbetter's theory that each paycheck resulting from discrimination constitutes a new violation, extending the 180-day statute of limitations.
"[The Supreme Court] ruling just doesn't make sense in the real world," Ledbetter said at a news conference. "In a lot of places you could get fired for asking your co-workers how much they are making."
Last year, Senate Republicans blocked the bill from passing that chamber. But on January 22nd, the Senate passed the bill 61-36. With President Obama's signature, the Fair Pay Act now is the law of the land.
But by a 256-163 vote, the House also passed a companion bill, the Paycheck Fairness Act. The bill would amend the Equal Pay Act by closing loopholes in the law, making clear that victims of gender-based discrimination can sue for compensatory and punitive damages. It also puts the burden on employers to prove that any disparities in wages are job-related and not sex-based and protects employees who discuss their wages with co-workers and who file complaints.
An identical bill has been introduced in the U.S. Senate where it has been considered in committee and recommended to the Senate as a whole.
The 2007 U.S. Census shows that full-time working women earned 77 cents to every dollar earned by men. A report issued by the American Association of University Women titled "Behind the Pay Gap" found that most of the wage gap is explained by factors such as employment, education and personal choices. However, proponents of the bills state that while these factors play a role, women earn less than men in every field and at every educational level.
President Obama has indicated that he will sign that bill into law as well.
According to John Sarno, president of the Employers Association of New Jersey, if enacted the equal pay laws will significantly increase unequal pay litigation.
"The Equal Pay Act requires that men and women be given equal pay for equal work in the same establishment. The jobs need not be identical, but they must be substantially equal," he says. "There are many reasons why you will find wage disparity at some companies. Most of the time it's unintentional but these laws will impose liability even on unintentional discrimination and hold the employer's feet to the fire."
"The main focus will be on the performance evaluations," he adds.
Learn more. EANJ will be hosting Equal Pay seminars, Click here for details and registration.
