What Is the Lilly Ledbetter Fair Pay Act?

Workers have been fighting for equal pay for decades. In the 1960s, Congress passed the Equal Pay Act of 1963, which prohibited gender-based discrimination in pay. Despite the provisions of this act, employers continued to pay workers differently based on their sex. This led to Congress passing a federal law known as the “Lilly Ledbetter Fair Pay Act of 2009" under President Obama.

The Lily Ledbetter Act makes it easier for women to challenge unequal pay in court by effectively extending the statute of limitations on filing a claim.

Here, we will explain what the Lilly Ledbetter Fair Pay Act is. We will also offer a brief history behind the passing of the act. Finally, we'll discuss what to do if you believe you're the victim of sex-based pay discrimination.

History of the Lilly Ledbetter Fair Pay Act

Lilly Ledbetter's name will forever be synonymous with a woman's right to equal pay in the workplace. In 1998, she sued her employer, Goodyear Tire, for wage discrimination.

Through her lawsuit, Ledbetter fought for nearly a decade to close the gap between women's and men's wages. The case reached the U.S. Supreme Court in 2006.

In Ledbetter v. Goodyear Tire & Rubber Co., the Supreme Court upheld a severely restrictive time restraint that Goodyear maintained for employees who wanted to file gender-based pay discrimination complaints.

Even after the Supreme Court's decision in her discriminatory compensation case, Ledbetter continued to lobby Washington to change the law. In 2009, President Barack Obama signed the Lilly Ledbetter Fair Pay Act of 2009, effectively overturning the Supreme Court's decision.

Ledbetter's Story

Lilly Ledbetter worked for Goodyear in Gadsden, Alabama, for 19 years. She was one of the few female supervisors at the Gadsden plant and consistently faced sexual harassment and gender discrimination at work. Still, she persevered and received recognition as a member of Goodyear management.

In 1998, as she neared retirement, Ledbetter discovered a pay gap between her and her male coworkers. She received an anonymous note explaining the salary disparity in her inter-office mailbox. Ledbetter soon learned that her salary was as much as 40 percent lower than that of the lowest-paid male supervisor.

Ledbetter filed a pay discrimination complaint with the Equal Employment Opportunity Commission (EEOC) in July 1998. After she retired in November of that year, she filed a discrimination lawsuit under Title VII of the Civil Rights Act of 1964.

The Lilly Ledbetter Litigation

At trial, Ledbetter argued that her performance evaluations at work were impacted by the fact that she was female. And therefore, she didn't get the raises she would have if she'd been evaluated the same way as her male coworkers.

Goodyear claimed that the evaluations were not discriminatory, and Ledbetter was paid fairly based on her performance.

The jury sided with Ledbetter and awarded her back pay and around $3.3 million in compensatory and punitive damages.

But the victory was short-lived, as the 11th Circuit Court of Appeals reversed the jury verdict. On appeal, Goodyear successfully argued that Ledbetter's claims were time-barred because the company had last made a decision on her pay more than 180 days before filing her complaint with the EEOC. A Title VII claim must be brought within 180 days "after the alleged unlawful employment practice occurred."

Ledbetter appealed to the U.S. Supreme Court.

In a 5-4 decision authored by Justice Samuel Alito, the Supreme Court upheld the Eleventh Circuit Court's decision. The Court ruled that claims like this had to be filed within 180 days of an employer's decision about a worker's pay, even if the worker didn't learn about the unfair pay until much later.

In practice, the Ledbetter decision created incentives for employers to conceal discriminatory conduct until the 180-day period had passed. This undermined Congress's goal of equal work for equal pay.

Reading her dissenting opinion from the bench, Justice Ruth Bader Ginsburg emphasized that it was up to Congress to correct the Court's “parsimonious reading of Title VII," stating that “[o]nce again, the ball is in Congress' court."

Congress's Legislative Fix

Democrats were quick to react, introducing the Lilly Ledbetter Fair Pay Act in June 2007. The Lilly Ledbetter Act established that each discriminatory paycheck resets the 180-day limit to file a claim. It also states that each time an employer issued a paycheck, they violated the law anew.

But Senate Republicans opposed the bill, citing the potential for frivolous lawsuits in their opposition. The original bill died in the Senate in April 2008.

Following the 2008 election, the Lilly Ledbetter Fair Pay Act was reintroduced in January 2009. It quickly passed in the House and the Senate and reached President Obama's desk in less than a month. It was the first bill he signed into law after becoming president.

Sadly, Lilly Ledbetter never received financial redress. Despite the law bearing her name, Ledbetter herself ultimately received no compensation. The court vacated her jury verdict, and the ultimate judgment in Goodyear's favor remains final. However, her long fight for justice helped narrow the wage gap for all working women.

A Discrimination Lawyer Can Help

If you believe you're the victim of sex-based pay discrimination, contact an employment law attorney immediately. The good news is that the Lilly Ledbetter Act offers retroactive damages. It also applies to other forms of pay discrimination, not just those based on gender. Your attorney can review your claim and explain your options.

Most employment lawyers offer new clients a free case review. Contact a skilled attorney near you to determine if you have a valid claim.