05/29/2007
CONTACT: Melissa Sharp, 202-554-9000
Washington, D.C.--The U.S. Supreme Court today delivered an important decision for small-business owners that will spare employers from the burdensome task of defending themselves against an alleged discrimination claim that occurred years in the past.
In the case, Lilly Ledbetter v. Goodyear Tire & Rubber Co., the Supreme Court determined that there is a limit as to how far back a plaintiff can reach when seeking damages in a disparate pay claim under Title VII of the 1964 Civil Rights Act. Holding that the statute of limitations for these claims begins when the alleged discrimination occurs, not when the claimant realizes the consequences of the alleged discrimination, the Supreme Court respected the intent of the statute and has given both employers and employees a clear guideline to follow when dealing with Title VII claims.
"We are thrilled with the Ledbetter decision," said Karen Harned, the National Federation of Independent Business Legal Foundation executive director. "Allowing an employee to wait years before they file a disparate pay claim is simply unfair to the defendant business. As time goes by, employees come and go and evidence of any event becomes increasingly more difficult to produce. This is why statutes of limitations are key components of our justice system. Title VII's specific charge-filing requirement, which operates as a statute of limitations, was adopted by Congress to protect employers from the burden of defending decisions made in the distant past. NFIB is pleased that the Court chose to respect the intent of the statute and decided that there must be a limit for when Title VII claims can be filed."
The case decided was Lilly Ledbetter v. Goodyear Tire & Rubber Co., Docket No. 05-1074. Lilly Ledbetter, a supervisor in Goodyear's tire assembly center for 19 years, had asked the court to look way, way back--to alleged discrimination that occurred in 1979. NFIB's Legal Foundation filed an amicus brief in this case.
