111th Congress Acts Quickly on Paycheck Fairness Act and Lilly Ledbetter Fair Pay Act

Washington, D.C.-- With Congressman Eliot Engel as an original co-sponsor, the House passed legislation to finally even the playing field for women in the workplace by providing severe penalties for employers that insist on practicing gender-based discrimination. By passing The Lilly Ledbetter Fair Pay Act (H.R. 11) and The Paycheck Fairness Act (H.R. 12), the full House has laid the groundwork for women paid less than their male counterparts to bring suits against their employers to receive comparable compensation. H.R 11 passed 247 to 171 and H.R. 12 passed 256 to 163.

Rep. Engel said, “These Acts should make employers that still underpay women think twice before they discriminate. Although the wage gap between men and women has narrowed since the passage of the Equal Pay Act in 1963, gender-based wage discrimination remains a problem for women. According to the U.S. Census Bureau, women only make 78 cents for every dollar earned by a man. The Institute of Women’s Policy Research found that this wage disparity will cost women anywhere from $400,000 to $2 million over a lifetime in lost wages.”

The Paycheck Fairness Act would close loopholes created by courts and weak sanctions in the law that have led some employers to avoid liability for gender-based pay discrimination. By amending the Fair Labor Standards Act of 1938, the Secretary of Labor will be authorized to seek compensatory or punitive damages against offending employers.

Rep. Engel said, “It is almost unfathomable to say that in 2009 – in a world with women serving as Speaker of the House and Secretary of State – that women in America are not being paid fairly when compared with men. I remain hopeful the full Senate will promptly consider both of these measures, and incoming President Obama will sign them into law.”

The Paycheck Fairness Act (H.R. 12):

* Puts women on equal footing as other victims of discrimination. The Equal Pay Act only allows women to recover back pay and some liquidated damages. The Paycheck Fairness Act will allow women to sue for compensatory and punitive damages.
* Prevents courts from making poor excuses for discriminating against women. The Paycheck Fairness Act requires employers to prove that disparity is not gender-based, but job-related and consistent with business necessity.
* Protects employees that discuss salary from retaliation. Some employers prohibit employees from discussing their pay with each other to mask their discriminatory practices. Open discussion among peers is the best way to uncover gender-bias and the Paycheck Fairness Act will protect people from employer punishment.
* Protects families and the nation’s economy. More and more families require two paychecks to make ends meet. To have a woman work as hard as a man and deposit less money in their bank account hurts their chances to provide for their children and to contribute back into the economy. Single women would also face a larger chance of poverty than single men.

Lilly Ledbetter worked for nearly two decades at a Goodyear Tire and Rubber facility in Alabama. She sued and won a judgment against the company after learning she was the lowest-paid supervisor at the plant, despite having more experience than several male counterparts. The Supreme Court reversed a jury decision by saying that she waited too long to sue, despite the fact that she filed a charge immediately after learning of the discrepancy. This legislation is designed to strengthen the law and correct the action taken by the Supreme Court.

Among the details of the Lilly Ledbetter Fair Pay Act (H.R. 11) are:

* Restores the law to where it was prior to the Supreme Court decision. Each paycheck resulting from a discriminatory decision would be a new violation. As long as a worker files a charge within 180 days of receiving the paycheck the charge will be considered timely.
* Encourages immediate filing of a grievance. Back pay is restricted to two years, the longer you wait the less you receive. Employees are encouraged to file claims immediately.
* Prevents other forms of pay discrimination to occur. The Supreme Court decision made it harder for race, religion, national origin, disability and age discrimination cases to proceed as well.

“The Court allowed employers to get away with discrimination by allowing them to ‘run out the clock.’ If a company kept their unfair practices hidden for 180 days, they could get away with it for the rest of the worker’s career. Most co-workers do not know what their colleagues make, so it is more than likely those days would pass silently. The law used to work properly before the Court stepped in. This legislation will make sure that no one else is treated the way Lilly Ledbetter was treated,” said Rep. Engel.

Rep. Engel added, “The House is taking a huge step towards bringing equity to gender relations in the workplace. Simply put, it is about time that women were treated equally for equal work and I am proud to support this legislation.”