Lilly Ledbetter Fair Pay Act: Definition, History, Impact

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Lilly Ledbetter Fair Pay Act: Definition, History, Impact

What the Act does

The Lilly Ledbetter Fair Pay Act of 2009 restores and clarifies federal protections against wage discrimination. Under the Act, a new statute of limitations begins with each discriminatory paycheck — not only from the date the pay decision was made. That means an employee can file a claim within 180 days of the most recent discriminatory pay decision (or paycheck), making it easier to challenge ongoing pay disparities based on:
* Sex
* Race
* Color
* Religion
* National origin
* Age
* Disability

The Act was the first bill signed into law by President Barack Obama.

Why the law was needed: the Ledbetter case

Lilly Ledbetter worked as a manager at a Goodyear tire plant and discovered late in her career that she had been paid substantially less than similarly situated male coworkers. She sued under Title VII of the Civil Rights Act of 1964. A jury initially awarded her back pay and more than $3 million in damages, but the Supreme Court ruled in 2007 that her claim was time-barred because it was filed more than 180 days after the employer’s original pay decisions.

Justice Ruth Bader Ginsburg’s dissent argued that wage discrimination is often hidden and that each discriminatory paycheck should be treated as a separate violation. Congress responded by passing the Lilly Ledbetter Fair Pay Act, which effectively adopted that reasoning: each discriminatory paycheck restarts the 180-day filing period.

Practical impact

  • Resets the filing clock: Employees can challenge pay discrimination based on a prior discriminatory pay decision as long as they file within 180 days of the last paycheck affected by that decision.
  • Protects long-term employees: Workers who learn about past discrimination years later can still bring claims tied to more recent paychecks.
  • Reinforces existing anti-discrimination statutes, particularly Title VII and the Equal Pay Act.

Despite these protections, pay discrimination persists, and the Act is one tool among others needed to address wage gaps.

Current context and related issues

  • Gender pay gap: In 2022, women’s median annual earnings were about 84% of men’s, according to U.S. Census Bureau data.
  • Racial disparities: Women of color face larger gaps — for example, Black, Latina, and Native American women earned roughly 64%, 55%, and 59% respectively of what non‑Hispanic white men earned (data cited in broad studies).
  • Salary history bans: Many jurisdictions now prohibit employers from asking candidates about salary history to prevent past discriminatory pay from perpetuating future gaps. As of mid‑2023, multiple states have adopted such bans; research suggests these bans can raise pay for women and Black workers.

What to do if you suspect pay discrimination

  • Document: Keep records of pay stubs, job duties, performance reviews, and any communications about pay.
  • Check internal policies: Follow your employer’s procedures for reporting discrimination.
  • File with the EEOC: You can file a charge of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC explains the process and deadlines on its website.
  • Seek advice: Consider consulting an employment attorney or a workers’ rights organization to understand your options and timelines.

Legacy and takeaway

The Lilly Ledbetter Fair Pay Act closed a legal gap that made it difficult for employees to challenge hidden or long‑running pay discrimination. By treating each discriminatory paycheck as a separate violation, the law improved access to remedies for affected workers. It complements other policy efforts — such as transparency measures and salary‑history bans — aimed at narrowing persistent wage gaps. Despite progress, continued enforcement and additional reforms are necessary to fully address pay discrimination.