Only three days after beginning a new session, the House approved two bills
Friday, January 9, that would make it easier for employees to sue for pay
discrimination and collect larger damages.
The House votes, mostly along party lines, marked the second time that the
bills have passed during the past two years, but they have to be acted on again
because they previously did not make it through the Senate.
After an election that increased the Democratic majorities in both chambers
and put a Democratic president in the White House, the prospect for the bills
becoming law has improved dramatically, so House leaders moved them to the top
of the legislative agenda.
The Lilly Ledbetter Fair Pay Act (http://thomas.loc.gov/cgi-bin/thomas),
which was approved 247-171, would restart the statute of limitations for filing
a lawsuit with each paycheck diminished by discrimination. The Paycheck Fairness
Act (http://thomas.loc.gov/cgi-bin/thomas),
approved 256-163, would allow employees to pursue unlimited compensatory and
punitive damages in pay lawsuits.
The House considered the bills under a rule that prevented amendments and
then sent them as one package to the Senate. But it doesn’t look like the Senate
will take the same approach as the House.
Within the next two weeks, the Senate intends to bring up only the Ledbetter
bill, according to Senate Majority Leader Harry Reid, D-Nevada.
“We’re going to do just that narrow issue,” Reid said at a press conference
Wednesday.
Critics say the bills would significantly change civil rights law and foster
costly lawsuits at a time when businesses are struggling to survive the
recession.
The measures were put on a fast track by House Democratic leaders to address
what they call pressing economic and social problems for women caused by
workplace bias.
“It is the highest priority to us,” House Speaker Nancy Pelosi, D-California,
said in a press conference call Thursday. “It is very important because of what
it means for the economic security of our country.”
Proponents of the Ledbetter bill say that it is designed to overturn a 2007
Supreme Court decision. Ledbetter, a former supervisor at a Goodyear Tire &
Rubber plant in Alabama, sued the company for paying her less than her male
counterparts for the same job for 20 years.
Ledbetter said she didn’t realize the discrepancy existed until a colleague
placed an anonymous note in her mailbox at work many years later. The Supreme
Court ruled that Ledbetter should have filed a suit within 180 days of the
initial discriminatory action rather than nearly two decades later.
The Ledbetter bill would make each paycheck a continuing violation. “We will
reinstitute the law as it was before the Supreme Court decision,” said Rep.
George Miller, D-California and chairman of the House Education and Labor
Committee.
Miller said that “especially in this economy when every dollar counts,” the
Ledbetter decision has to be overturned because it “is costing women across the
country millions and millions and millions of dollars.”
President-elect Barack Obama often highlighted the Ledbetter bill during his
campaign to increase his support among women. Pelosi calls Ledbetter “our
heroine.”
The other bill approved by the House, the Paycheck Fairness Act, would change
a federal pay discrimination law, the Equal Pay Act, so that plaintiffs could
sue for unlimited compensatory and punitive damages.
It would force employers to prove that pay discrepancies are based on factors
other than sex. The measure also would prohibit company retaliation against
employees for discussing wages with other employees.
Opponents of the paycheck bill say it would apply to unintentional
discrimination. They also say that both bills would make it easier to file
class-action lawsuits and that the Ledbetter bill would significantly alter the
statute of limitations for all discrimination claims, not just those involving
pay.
“Unfortunately, these bills do little to prevent actual instances of unlawful
discrimination, but they will open the floodgates to unwarranted litigation
against employers at a time when businesses are struggling to retain and create
jobs,” Jen Kubicki, vice president for human resource policy at the National
Association of Manufacturers, wrote in a letter to House members.
The business community will have more time to make its arguments about the
bills to the Senate.
“They’re collectively so far over the top, we have a shot to defeat them in
the Senate,” said Randel Johnson, vice president for labor, immigration and
employee benefits at the U.S. Chamber of Commerce.
Only the Ledbetter bill came up for a Senate vote last year. Republicans
blocked it with a filibuster, which requires at least 41 votes. After GOP losses
in the 2008 election, Senate Republicans are currently at 41, pending a final
decision on a recount in Minnesota.
Nonetheless, Republicans are ready to fight the pay measures. Senate Minority
Leader Mitch McConnell, R-Kentucky, said at a press conference Wednesday that
most difficult bills have had to meet the filibuster threshold.
“I cannot imagine that the Ledbetter legislation would not be subject to 60
votes,” he said. “But that’s routine, not controversial. It’s not unusual for a
senator on either side to have a problem with a bill.”
—Mark Schoeff Jr.