A bill that would overturn a recent Supreme Court decision on
pay
discrimination gained House approval on Tuesday, July 31, but fell well
short of the margin required to override a threatened presidential
veto.In a 225-199 vote, the House passed the Lilly Ledbetter Fair
Pay
Act. Named after the plaintiff in a recent Supreme Court case, the
legislation would allow victims to file a claim within 180 days of any
paycheck
that has been diminished by bias—even if the discriminatory
act that set the pay
disparity in motion occurred decades ago.
The statute of limitations would restart with each affected
check,
undoing a contentious 5-4 Supreme Court decision handed down May 29.
The court ruled that a claim must be filed within 180 days of
the
moment that an unfair pay adjustment is made.
Outside of that statutory window, which in some states is 300
days,
an employer is not liable, the court said. The ruling significantly
narrows the scope of pay cases.
The trial jury found in favor of Ledbetter, a former
supervisor at a Goodyear Tire & Rubber plant in Gadsden, Alabama, who sued the company for paying her
less than it paid men for the same job over most of her nearly 20-year
tenure.
The Supreme Court, however, ruled that Ledbetter didn’t have
a case
because she did not file the suit when the discrimination occurred in the
1970s. Ledbetter said she did not discover the disparity until more
than a
decade later.
Democrats denounced the decision, responding in part to
Supreme
Court Justice Ruth Bader Ginsburg. She excoriated the court majority for
ignoring the realities of today’s workplace, where pay levels are
secret and
women and minorities can feel intimidated, and encouraged
Congress to clarify
federal discrimination law.
Democrats argued that they were fortifying the intended
statute of
limitations—and preventing companies from running out the
clock.
“If they can hide the discriminatory act for 180 days, they
can
continue to discriminate far into the future,” said Rep. George Miller,
D-California and chairman of the House Education and Labor Committee,
during the
floor debate on Monday, July 30.
Passing the Ledbetter bill “is the only decent thing to do,”
Miller
said.
Several obstacles face the legislation. The foremost is
President
Bush’s threatened veto. In a policy statement July 27, the
administration said that the measure would result in the “effective
elimination
of any statute of limitations” for pay discrimination and
possibly for promotion
and termination.
A two-thirds majority of the House and Senate would be
required to
override a presidential veto. It’s not clear, however, that the
Ledbetter bill will get to Bush.
A companion measure in the Senate introduced July 20 by Sen.
Edward
Kennedy, D-Massachusetts and chairman of the Senate Health, Education,
Labor and Pensions Committee, is drawing opposition from Sen. Mike
Enzi,
R-Wyoming and the ranking member of the panel.
“It is too broadly written and would provide trial attorneys
a blank
check to pursue a litany of actions that have little or nothing to do
with pay discrimination,” said Enzi spokesman Craig Orfield.
In the House debate, Republicans criticized Democrats for
rushing
forward for political reasons with what Republicans called a vague and
sloppy bill. Amendments were barred during the floor debate.
“We aren’t taking sides for or against discrimination in the
workplace,” Rep. Howard “Buck” McKeon, ranking member of the labor
committee,
said in describing the differences between the parties.
“Rather, we’re staking
out distinct positions on fair and equitable
justice and the rule of
law.”
Democrats maintained that the bill simply returns
discrimination law
to where it was before the Supreme Court’s
decision.
“It restores the statute of limitations that has been in
existence
for nearly four decades,” said Rep. Robert Andrews, D-New Jersey. “If
these cataclysmic events were going to happen, why haven’t they
happened over
the last 35 years?”
Andrews cited an estimate by the Congressional Budget Office
that
stated that the Ledbetter measure “would not establish a new cause of
action for claims of pay discrimination.”
But an employment lawyer is wary of the bill. Debra Friedman,
an
attorney with Cozen O’Connor, said that it goes beyond wages to cover
vacation benefits, pensions and other kinds of compensation. It could
force
companies to defend against stale claims after witnesses have
left the company
and records have been lost or destroyed.
“The bill places an unrealistic burden on employers to
identify and
eradicate the effects of discriminatory actions that employers may
not
be aware of and fails to take into account the difficulties employers will
face in defending claims of discrimination dating back years—even
decades,”
Friedman said.
Regardless of whether the bill becomes law, Friedman
encourages
employers to implement facially neutral performance evaluation
systems,
require next-level management review of evaluations, specify the
reasons for compensation adjustments and communicate with employees
about those
decisions.
—Mark Schoeff Jr.