President Obama Signs Fair Pay Act Extending Time for Filing Pay Discrimination Claims
This memorandum examines the first law signed by President Obama -- the Lilly Ledbetter Fair Pay Act. The new law removes a substantial barrier to filing pay discrimination claims by holding that the statute of limitations begins to run each time an individual is affected by a discriminatory compensation decision, i.e., each time an employee receives a paycheck tainted by the original decision. Because the Fair Pay Act extends the time in which employees may bring pay discrimination claims, employers face the threat of increased litigation under all the major civil rights laws and should take appropriate steps to protect themselves.