Jack Lee: Lily Ledbetter Fair Pay Act Long Overdue
By Jack Lee, Partner, Minami Tamaki LLP
January 30, 2009
The Lily Ledbetter Fair Pay Act signed yesterday by President Obama is a long overdue fix to a U.S. Supreme Court decision that ignored the practical realities of the workplace and prior court rulings. It restores much-needed balance between employers and employees' rights regarding compensation differences in the workplace.
Even though a jury found that Ms. Ledbetter had been paid 40 percent less than males who held the same job because of her gender, the Supreme Court said she needed to bring her lawsuit within six months of when her pay changed.
Ms. Ledbetter did not realize she was being paid less than men until years after the discrimination began. Therefore, her lawsuit was too late and she got zero.
Of course, Ms. Ledbetter, like the vast majority of workers, did not know that her male colleagues were earning more until well after six months had passed. This new law will not help Lily Ledbetter get her money back because it's too late for her, but it will ensure that the Supreme Court decision will not hurt people who suffer from illegal discrimination in the future.
At most companies, employers do not disclose workers' salaries and workers do not openly discuss their salaries. Most people don't know what their counterparts are earning within the first six months of their employment. And how many employees would file a lawsuit about that within six months even if they did know?
Any pay disparities, however slight, grow gradually over many years. Under the Supreme Court's now-reversed decision, if you pay someone less because of illegal discrimination and keep that secret for six months, you can basically escape a lawsuit for pay discrimination. What this new law does is count each unequal paycheck as a new and discreet act of discrimination for which you can bring a lawsuit.
This new law doesn't just affect your pay, but other important benefits as well. There is a good argument that your pension payments should be augmented because your lower discriminatory pay, upon which retirement contributions are based, depressed your retirement benefits. It is especially significant that our new President signed this as his first piece of legislation.
Jack W. Lee, a Partner with Minami Tamaki LLP, has specialized in employment, consumer fraud and civil rights law for more than 30 years.
January 30, 2009
The Lily Ledbetter Fair Pay Act signed yesterday by President Obama is a long overdue fix to a U.S. Supreme Court decision that ignored the practical realities of the workplace and prior court rulings. It restores much-needed balance between employers and employees' rights regarding compensation differences in the workplace.
Even though a jury found that Ms. Ledbetter had been paid 40 percent less than males who held the same job because of her gender, the Supreme Court said she needed to bring her lawsuit within six months of when her pay changed.
Ms. Ledbetter did not realize she was being paid less than men until years after the discrimination began. Therefore, her lawsuit was too late and she got zero.
Of course, Ms. Ledbetter, like the vast majority of workers, did not know that her male colleagues were earning more until well after six months had passed. This new law will not help Lily Ledbetter get her money back because it's too late for her, but it will ensure that the Supreme Court decision will not hurt people who suffer from illegal discrimination in the future.
At most companies, employers do not disclose workers' salaries and workers do not openly discuss their salaries. Most people don't know what their counterparts are earning within the first six months of their employment. And how many employees would file a lawsuit about that within six months even if they did know?
Any pay disparities, however slight, grow gradually over many years. Under the Supreme Court's now-reversed decision, if you pay someone less because of illegal discrimination and keep that secret for six months, you can basically escape a lawsuit for pay discrimination. What this new law does is count each unequal paycheck as a new and discreet act of discrimination for which you can bring a lawsuit.
This new law doesn't just affect your pay, but other important benefits as well. There is a good argument that your pension payments should be augmented because your lower discriminatory pay, upon which retirement contributions are based, depressed your retirement benefits. It is especially significant that our new President signed this as his first piece of legislation.
Jack W. Lee, a Partner with Minami Tamaki LLP, has specialized in employment, consumer fraud and civil rights law for more than 30 years.