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Economic Justice

The Lilly Ledbetter Act and the Paycheck Fairness Act

The Lilly Ledbetter Fair Pay Act (H.R. 11), sponsored by Representative George Miller (D-CA) and the Paycheck Fairness Act (H.R. 12), sponsored by Representative Rosa DeLauro (D-CT) will help restore legal standards to sue for discriminatory pay, and advance fair and equal pay for all. Passage of both bills is critical to help victims of domestic violence shore up their ability to be economically independent and break free from a cycle of violence.

LILLY LEDBETTER FAIR PAY ACT (H.R. 11)

Background information on the Ledbetter Fair Pay Act 2007

• After working for Goodyear Tire Plant for almost 20 years, Lilly Ledbetter discovered through an anonymous note that her male counterparts were getting paid between 15% and 40% more than her.
• In 1998 Ms. Ledbetter filed a lawsuit against Goodyear.
•  Goodyear was found guilty of discrimination and in violation of Title VII of the Civil Rights Act of 1964 prohibiting discrimination against individuals because of race, color, national origin, religion and sex.
• Goodyear won an appeal by the 11th Circuit Court of Appeals and the case was heard before the Supreme Court.
• The Supreme Court ruled in a 5-4 decision that a pay discrimination complaint must be filed within about six months of the first time a worker gets a discriminatory paycheck and that Ms. Ledbetter's complaint exceeded the statute of limitations.

What will the Lilly Ledbetter Fair Pay Act do?

• This bill will reverse the outcome in the Ledbetter v. Goodyear Supreme Court decision that puts a limitation on the time available to rectify pay discrimination.
•  The bill will restore the longstanding interpretation of Title VII of the Civil Rights Act and other discrimination statues, protecting women from being discriminated against in the workplace.

Legislative Action on the Lilly Ledbetter Fair Pay Act in the 111th Congress

• The Ledbetter Fair Pay Act was introduced in the House (H.R. 11) by Rep. George Miller (D-CA-7) on January 6th 2009 with 168 cosponsors. The House may vote on this bill as early as January 9th 2009.

PAYCHECK FAIRNESS ACT (H.R. 12)

Background information on the Paycheck Fairness Act?

• This bill would enhance the enforcement of the Equal Pay Act.
• Would require a stronger commitment from the Department of Labor in its responsibilities to women workers.
• Would create strong penalties for employers who continue to discriminate against women through wage disparity.
• Employees would be protected from retaliation from their employer if they share salary information.
• Currently the Equal Pay Act only provides back pay and double that amount for a willful violation if the employer is found guilty of discrimination. The Paycheck Fairness Act would allow female employees to sue for compensatory and punitive damages.
•  Would provide training to the Equal Employment Opportunity Commission employees on matters involving discrimination in payment of wages, (subject to availability of funds).
• Would authorize the Secretary of Labor to establish a grant program to train women and girls to strengthen their negotiations skills to receive the best salaries and compensation packages available.
• Would provide research, education and outreach for employers, labor organizations and the public about ways to eliminate pay disparities.
• Would require the Secretary of Labor to develop guidelines for employers to objectively evaluate jobs based on education, skill, working conditions and responsibility.

Legislative Action on the Paycheck Fairness Act in the 111th Congress

•  This bill was introduced in the House (H.R. 12) by Rep. Rosa L. DeLauro (D-CT-3) on January 6th 2009 with 175 cosponsors. The House may vote on this bill as early as January 9th 2009.

Next Steps: The House will combine the Lilly Ledbetter Fair Pay Act and the Paycheck Fairness Act and send the joint bills to the Senate.

SCOPE OF WAGE DISCRIMINATION

• In 1963 women earned 59 cents for every dollar earned by men and in 2007 women still earn only 78 cents for every dollar earned by a male counterpart.
• Based on the median earnings of full-time, year-round workers, women's earnings were $35,102 compared to men's earnings of $45,113.
• The wage gap costs the average American full-time woman worker between $700,000 and $2 million over the course of her lifetime.
• A wage gap exists across many occupations. For example, in 2005 the median weekly wages for female physicians were 61% of that earned by male physicians. Women in sales earned 63% of what men in the equivalent positions earned.
• Women and men do not have equal pay in any of the states. Since 2001 Washington, D.C has the smallest wage gap at 92% while Wyoming has the biggest gap with 66%.