EEOC Revises Its Compliance Manual to Comply with Ledbetter Fair Pay Act
The EEOC has revised it compliance manual to conform to the requirements of the Lilly Ledbetter Fair Pay Act of 2009.
The Act, passed in January 2009, overturned the Supreme Court’s decision in Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618(2007), which allowed a person 180 days to bring a charge of compensation discrimination, 300 days if the charge is also covered by a state anti-discrimination law. The revised statute designates the receipt of a “discriminatory paycheck,” one that reflects a discriminatory decision or practice, as the start date of the statute of limitations.
The statute of limitations begins when any of the following events occur:
- The employer adopts a discriminatory decision or practice affecting compensation;
- The individual becomes subject to the decision or practice; or
- The individual is otherwise affected by the discriminatory decision or practice.
Under the “continuing violation theory,” each new paycheck is a separate event and starts a new tolling of the statute of limitations.
Employers should review their pay practices to remedy any potential discriminatory pay practices and prevent such events from occurring in the future.
The revised section of the Compliance Manual can be found in the Compensation Discrimination section 2-IV C.4.