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LEGISLATIVE REPORT
By Larry Bourgerie
Legislative Director
April 22, 2008
Legislative Report Archive
IMPORTANT - Federal Legislative Alert!
YOUR ASSISTANCE IS NEEDED!
HR professionals should be aware that
the U.S. Senate is scheduled to vote on Wednesday, April 23 on
legislation that would eliminate the uniform statute of limitations
for filing employment discrimination claims.
Under H.R. 2831, the Ledbetter Fair Pay Act, the time clock for
bringing a Title VII claim would re-start indefinitely as long as
an employee continued to receive a paycheck - or even a pension
payment - from a given employer. Consequently, the bill would
force HR professionals and employers to be prepared to defend pay
decisions made years or even decades earlier. Employees seeking
avenues to challenge pay decisions currently have at least 180 days
under Title VII and two years under the Equal Pay Act to pursue
discrimination claims.
The House of Representatives already passed the Ledbetter Fair Pay
Act on July 31, 2007. The good news is that, thanks in part to
letters sent by SHRM members last July, the House vote on H.R. 2831
was much closer than expected.
Now we ask that you please write your Senators and urge them to
VOTE NO on the Ledbetter Fair Pay Act!
Background
Ledbetter v. Goodyear Tire & Rubber Co., on which the Supreme Court
decided in May 2007, was a landmark case in employment law. The
case revolved around the statutory time limit for filing an
employment discrimination claim under Title VII of the Civil Rights
Act, which requires employees to bring such claims within 180 days
(if the employee's home state has no equal employment agency) or
300 days (if the employee's home state has an equal employment
agency) of the alleged unlawful employment action.
Shortly after retiring in 1998, Lilly Ledbetter, a supervisor at
Goodyear's Gadsden, Alabama facility, filed a pay discrimination
claim with the U.S. Equal Opportunity Commission, as directed under
Title VII. Ledbetter asserted that her gender had been the central
factor in several unsatisfactory performance evaluations she
received that led to her earning lower wages, and specifically
challenged a 1998 management decision to deny her a raise on the
grounds that it was gender biased.
Ledbetter's case advanced all the way to the Supreme Court, which
decided on May 29, 2007 that Ledbetter had not brought her
discrimination claim within the time period provided by the Civil
Rights Act. The Court held that the act of issuing paychecks
cannot be challenged as a discriminatory act; rather, the basis of
an actionable claim must be the decision to set compensation
rates. Therefore, the time limit for filing a charge with the EEOC
is not extended upon the receipt of each successive paycheck.
Legislation:
The Ledbetter Fair Pay Act, sponsored by Representative George
Miller (D-CA), is intended to overrule the Supreme Court.s decision
in Ledbetter. The proposed measure would effectively eliminate the
statue of limitations on pay discrimination claims by re-starting
the time clock for filing such a charge with the EEOC upon the
receipt of each successive paycheck. The bill would also re-start
the time clock when a retiree receives an annuity check from an
employer, and would thus keep employers liable to a discrimination
claim potentially decades after an alleged act of misconduct.
The legislation would amend the Civil Rights Act, the Age
Discrimination in Employment Act, the Americans with Disabilities
Act, and the Rehabilitation Act.
SHRM's Position
SHRM adamantly opposes all unlawful discrimination practices in the
workplace, and believes any intentional misconduct against
employees in any sector should be promptly addressed and resolved.
Consistent with that view, SHRM opposes the Ledbetter Fair Pay Act
because it would effectively eliminate the uniform statue of
limitations on pay discrimination claims.
Specifically, SHRM opposes the following aspects of the Ledbetter
Fair Pay Act:
Fundamentally Changes Statute of Limitations.By making the time
clock start over upon the issuance of each successive paycheck, the
bill would allow individuals to bring discrimination claims many
years after the occurrence of an alleged act of discrimination.
Yet the more time passes, the more likely it is that employment
records and witnesses will be unavailable, making it nearly
impossible for an employer to defend itself against such a claim.
Congress enacted the current statute of limitations on employment
suits based on the interest that all parties have in promptly and
accurately resolving claims.
Expands Plaintiff Field.The bill would significantly expand current
law by allowing, not just an employee who was discriminated
against, but other individuals who were "affected" by an act of pay
discrimination to file claims. The legislation may allow family
members, including spouses and children, and potentially others to
become plaintiffs in discrimination suits over a worker.s pay.even
after the worker was deceased.
Application to Other Civil Rights Statutes -The Ledbetter case
revolved around the issue of gender discrimination. But the
Ledbetter Fair Pay Act would change four major civil rights laws in
order to extend the statute of limitations for filing claims
related to all protected classes of employment law, including age,
race, religion and national origin.
Action Needed
Write or call your elected officials in Washington today! Your
U.S. Representatives needs to know your views on this important
matter before the private rights of employees are changed. To
write your elected official using HRVoice, follow these steps:
- Log onto SHRM Online by clicking here.
- Sign in using your member number and last name.
- Click on "Governmental Affairs," then go to "HRVoice" on
the left side of your screen.
- Choose "Write your elected officials".
- Click on "Urge Your Representative to Cosponsor H.R.
5515, the New Employee Verification Act"
under the heading "Take Immediate Action on these Hot Issues".
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