February 17, 2009 / Law Alert

President Obama Signs The Ledbetter Fair Pay Act Into Law

On January 29, 2009, the Lilly Ledbetter Fair Pay Restoration Act (Ledbetter Act) was the first bill signed into law by President Obama. This law will likely lead to an increase in pay discrimination lawsuits against employers.

The Ledbetter Act amends Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Rehabilitation Act of 1973 to allow an employee to file a charge of discrimination in pay within 180 or 300 days of the date when the employee is affected by a discriminatory wage decision or practice. Therefore, the Ledbetter Act effectively eviscerated the statute of limitations for wage discrimination claims because employees are, arguably, affected by a discriminatory wage decision each time they receive a paycheck.