That is what Lilly Ledbetter challenged us to do. And today, I sign this bill not just in her honor, but in honor of those who came before her. Women like my grandmother, who worked in a bank all her life, and even after she hit that glass ceiling, kept getting up and giving her best every day, without complaint, because she wanted something better for me and my sister.
And I sign this bill for my daughters, and all those who will come after us, because I want them to grow up in a nation that values their contributions, where there are no limits to their dreams and they have opportunities their mothers and grandmothers never could have imagined.
In the end, that’s why Lilly stayed the course. She knew it was too late for her—that this bill wouldn’t undo the years of injustice she faced or restore the earnings she was denied. But this grandmother from Alabama kept on fighting, because she was thinking about the next generation. It’s what we’ve always done in America—set our sights high for ourselves, but even higher for our children and our grandchildren.
And now it’s up to us to continue this work. This bill is an important step—a simple fix to ensure fundamental fairness for American workers—and I want to thank this remarkable and bipartisan group of legislators who worked so hard to get it passed. And I want to thank all the advocates who are in the audience who worked so hard to get it passed. And this is only the beginning. I know that if we stay focused, as Lilly did—and keep standing for what’s right, as Lilly did—we will close that pay gap and we will make sure that our daughters have the same rights, the same chances, and the same freedom to pursue their dreams as our sons.
THE LILLY LEDBETTER FAIR PAY RESTORATION ACT
Public Law 111-2
111th Congress
1st Session
An Act
To amend title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967, and to modify the operation of the Americans with Disabilities Act of 1990 and the Rehabilitation Act of 1973, to clarify that a discriminatory compensation decision or other practice that is unlawful under such Acts occurs each time compensation is paid pursuant to the discriminatory compensation decision or other practice, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Lilly Ledbetter Fair Pay Act of 2009”.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The Supreme Court in Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618 (2007), significantly impairs statutory protections against discrimination in compensation that Congress established and that have been bedrock principles of American law for decades. The Ledbetter decision undermines those statutory protections by unduly restricting the time period in which victims of discrimination can challenge and recover for discriminatory compensation decisions or other practices, contrary to the intent of Congress.
(2) The limitation imposed by the Court on the filing of discriminatory compensation claims ignores the reality of wage discrimination and is at odds with the robust application of the civil rights laws that Congress intended.
(3) With regard to any charge of discrimination under any law, nothing in this Act is intended to preclude or limit an aggrieved person’s right to introduce evidence of an unlawful employment practice that has occurred outside the time for filing a charge of discrimination.
(4) Nothing in this Act is intended to change current law treatment of when pension distributions are considered paid.
SEC. 3. DISCRIMINATION IN COMPENSATION BECAUSE OF RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN.
Section 706(e) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-5(e)) is amended by adding at the end the following:
“(3)(A) For purposes of this section, an unlawful employment practice occurs, with respect to discrimination in compensation in violation of this title, when a discriminatory compensation decision or other practice is adopted, when an individual becomes subject to a discriminatory compensation decision or other practice, or when an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from such a decision or other practice.
“(B) In addition to any relief authorized by section 1977A of the Revised Statutes (42 U.S.C. 1981a), liability may accrue and an aggrieved person may obtain relief as provided in subsection (g)(1), including recovery of back pay for up to two years preceding the filing of the charge, where the unlawful employment practices that have occurred during the charge filing period are similar or related to unlawful employment practices with regard to discrimination in compensation that occurred outside the time for filing a charge.”.
SEC. 4. DISCRIMINATION IN COMPENSATION BECAUSE OF AGE.
Section 7(d) of the Age Discrimination in Employment Act of 1967 (29 U.S.C. 626(d)) is amended—
(1) in the first sentence—
(A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; and
(B) by striking “(d)” and inserting “(d)(1)”;
(2) in the third sentence, by striking “Upon” and inserting the following:
“(2) Upon”; and
(3) by adding at the end the following:
“(3) For purposes of this section, an unlawful practice occurs, with respect to discrimination in compensation in violation of this Act, when a discriminatory compensation decision or other practice is adopted, when a person becomes subject to a discriminatory compensation decision or other practice, or when a person is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from such a decision or other practice.”.
SEC. 5. APPLICATION TO OTHER LAWS.
(a) AMERICANS WITH DISABILITIES ACT OF 1990.—The amendments made by section 3 shall apply to claims of discrimination in compensation brought under title I and section 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 1211 et seq., 12203), pursuant to section 107(a) of such Act (42 U.S.C. 12117(a)), which adopts the powers, remedies, and procedures set forth in section 706 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-5).
(b) REHABILITATION ACT OF 1973.—The amendments made by section 3 shall apply to claims of discrimination in compensation brought under sections 501 and 504 of the Rehabilitation Act of 1973 (29 U.S.C. 791, 794), pursuant to—
(1) sections 501(g) and 504(d) of such Act (29 U.S.C. 791(g), 794(d)), respectively, which adopt the standards applied under title I of the Americans with Disabilities Act of 1990 for determining whether a violation has occurred in a complaint alleging employment discrimination; and
(2) paragraphs (1) and (2) of section 505(a) of such Act (29 U.S.C. 794a(a)) (as amended by subsection (c)).
(c) Conforming Amendments.—
(1) REHABILITATION ACT OF 1973.—Section 505(a) of the Rehabilitation Act of 1973 (29 U.S.C. 794a(a)) is amended—
(A) in paragraph (1), by inserting after “(42 U.S.C. 2000e-5 (f) through (k))” the following: “(and the application of section 706(e)(3) (42 U.S.C. 2000e-5(e)(3)) to claims of discrimination in compensation)”; and
(B) in paragraph (2), by inserting after “1964” the following: “(42 U.S.C. 2000d et seq.) (and in subsection (e)(3) of section 706 of such Act (42 U.S.C. 2000e-5), applied to claims of discrimination in compensation)”.
(2) CIVIL RIGHTS ACT OF 1964—Section 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-16) is amended by adding at the end the following:
“(f) Section 706(e)(3) shall apply to complaints of discrimination in compensation under this section.”.
(3) AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967.—Section 15(f) of the Age Discrimination in Employment Act of 1967 (29 U.S.C. 633a(f)) is amended by striking “of section” and i
nserting “of sections 7(d)(3) and”.
SEC. 6. EFFECTIVE DATE.
This Act, and the amendments made by this Act, take effect as if enacted on May 28, 2007 and apply to all claims of discrimination in compensation under title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), the Age Discrimination in Employment Act of 1967 (29 U.S.C. 621 et seq.), title I and section 503 of the Americans with Disabilities Act of 1990, and sections 501 and 504 of the Rehabilitation Act of 1973, that are pending on or after that date.
Approved January 29, 2009.
LEGISLATIVE HISTORY—S. 181 (H.R. 11):
CONGRESSIONAL RECORD, Vol. 155 (2009):
Jan. 15, 21, 22, considered and passed Senate.
Jan. 27, considered and passed House.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009):
Jan. 29, Presidential remarks.
Washington, D.C., U.S. Government Printing Office,
DOCID: f:pub1002.111, p. 123 STAT. 5.
THE PAYCHECK FAIRNESS ACT
Excerpted testimony of Lisa M. Maatz, Director of Public Policy and Government Relations, American Association of University Women, Hearing by Joint Economic Committee, United States Congress, “Equal Pay for Equal Work? New Evidence on the Persistence of the Gender Pay Gap,” April 28, 2009
WHAT WILL THE PAYCHECK FAIRNESS ACT DO?
THE PAYCHECK Fairness Act is a comprehensive bill that strengthens the Equal Pay Act by taking meaningful steps to create incentives for employers to follow the law, empower women to negotiate for equal pay, and strengthen federal outreach and enforcement efforts. The bill would also deter wage discrimination by strengthening penalties for equal pay violations, and by prohibiting retaliation against workers who inquire about employers’ wage practices or disclose their own wages.
THE PAYCHECK FAIRNESS ACT WOULD
• Close a Loophole in Affirmative Defenses for Employers. The legislation clarifies acceptable reasons for differences in pay by requiring employers to demonstrate that wage gaps between men and women doing the same work have a business justification and are truly a result of factors other than sex.
• Fix the “Establishment” Requirement. The bill would clarify the establishment provision under the Equal Pay Act, which would allow for reasonable comparisons between employees within clearly defined geographical areas to determine fair wages. This provision is based on a similar plan successfully used in the state of Illinois.
• Prohibit Employer Retaliation. The legislation would deter wage discrimination by prohibiting retaliation against workers who inquire about employers’ wage practices or disclose their own wages. (Note: Employees with access to colleagues’ wage information in the course of their work, such as human resources employees, may still be prohibited from sharing that information.) This non-retaliation provision would have been particularly helpful to Lilly Ledbetter, because Goodyear prohibited employees from discussing or sharing their wages. This policy delayed her discovery of the discrimination against her by more than a decade.
• Improve Equal Pay Remedies. The bill would deter wage discrimination by strengthening penalties for equal pay violations by providing women with a fair option to proceed in an opt-out class action suit under the Equal Pay Act, and allowing women to receive punitive and compensatory damages for pay discrimination. The bill’s measured approach levels the playing field by ensuring that women can obtain the same remedies as those subject to discrimination on the basis of race or national origin.
• Increase Training, Research and Education. The legislation would authorize additional training for Equal Employment Opportunity Commission staff to better identify and handle wage disputes. It would also aid in the efficient and effective enforcement of federal anti–pay discrimination laws by requiring the EEOC to develop regulations directing employers to collect wage data, reported by the race, sex, and national origin of employees. The bill would also require the U.S. Department of Labor to reinstate activities that promote equal pay, such as: directing educational programs, providing technical assistance to employers, recognizing businesses that address the wage gap, and conducting and promoting research about pay disparities between men and women.
• Establish Salary Negotiation Skills Training. The bill would create a competitive grant program to develop salary negotiation training for women and girls.
• Improve Collection of Pay Information. The bill would also reinstate the Equal Opportunity Survey, to enable targeting of the Labor Department’s enforcement efforts by requiring all federal contractors to submit data on employment practices such as hiring, promotions, terminations and pay. This survey was developed over two decades and three presidential administrations, was first used in 2000, but was rescinded by the Department of Labor in 2006.
The Paycheck Fairness Act maintains the protections currently provided to small businesses under the Equal Pay Act, and updates its remedies and protections using familiar principles and concepts from other civil rights laws. These new provisions are not onerous and are well-known to employers, the legal community, and the courts. As a result, the legislation will enhance women’s civil rights protections while simultaneously protecting the job-creating capacity of small businesses.
THE PAYCHECK FAIRNESS ACT
111th Congress
1st Session
H.R. 12
A Bill
To amend the Fair Labor Standards Act of 1938 to provide more effective remedies to victims of discrimination in the payment of wages on the basis of sex, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Paycheck Fairness Act”.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Women have entered the workforce in record numbers over the past 50 years.
(2) Despite the enactment of the Equal Pay Act in 1963, many women continue to earn significantly lower pay than men for equal work. These pay disparities exist in both the private and governmental sectors. In many instances, the pay disparities can only be due to continued intentional discrimination or the lingering effects of past discrimination.
(3) The existence of such pay disparities—
(A) depresses the wages of working families who rely on the wages of all members of the family to make ends meet;
(B) undermines women’s retirement security, which is often based on earnings while in the workforce;
(C) prevents the optimum utilization of available labor resources;
(D) has been spread and perpetuated, through commerce and the channels and instrumentalities of commerce, among the workers of the several States;
(E) burdens commerce and the free flow of goods in commerce;
(F) constitutes an unfair method of competition in commerce;
(G) leads to labor disputes burdening and obstructing commerce and the free flow of goods in commerce;
(H) interferes with the orderly and fair marketing of goods in commerce; and
(I) in many instances, may deprive workers of equal protection on the basis of sex in violation of the 5th and 14th amendments.
(4) (A) Artificial barriers to the elimination of discrimination in the payment of wages on the basis of sex continue to exist decades after the enactment of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) and the Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.).
(B) These barriers have resulted, in significant part, because the Equal Pay Act has not worked as Congress originally intended. Improvements and modifications to the law are necessary to ensure that the Act provides effective protection to those subject to pay discrimination on the basis of their sex.
(C) Elimination of such barriers would have positive effects, including—
(i) providing a solution to problems in the economy created by unfair pay disparities;
(ii) sub
stantially reducing the number of working women earning unfairly low wages, thereby reducing the dependence on public assistance;
(iii) promoting stable families by enabling all family members to earn a fair rate of pay;
(iv) remedying the effects of past discrimination on the basis of sex and ensuring that in the future workers are afforded equal protection on the basis of sex; and
(v) ensuring equal protection pursuant to Congress’ power to enforce the 5th and 14th amendments.
(5) The Department of Labor and the Equal Employment Opportunity Commission have important and unique responsibilities to help ensure that women receive equal pay for equal work.
(6) The Department of Labor is responsible for—
(A) collecting and making publicly available information about women’s pay;
(B) ensuring that companies receiving Federal contracts comply with antidiscrimination affirmative action requirements of Executive Order 11246 (relating to equal employment opportunity);
(C) disseminating information about women’s rights in the workplace;
(D) helping women who have been victims of pay discrimination obtain a remedy; and
(E) being proactive in investigating and prosecuting equal pay violations, especially systemic violations, and in enforcing all of its mandates.
(7) The Equal Employment Opportunity Commission is the primary enforcement agency for claims made under the Equal Pay Act, and issues regulations and guidance on appropriate interpretations of the law.
(8) With a stronger commitment by the Department of Labor and the Equal Employment Opportunity Commission to their responsibilities, increased information as a result of the amendments made by this Act to the Equal Pay Act of 1963, wage data, and more effective remedies, women will be better able to recognize and enforce their rights.
(9) Certain employers have already made great strides in eradicating unfair pay disparities in the workplace and their achievements should be recognized.
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