07/ 25/ 2007
The U.S. Supreme Court agreed with NFIB's Small Business Legal Center and delivered an important decision for small-business owners that will spare employers from the burdensome task of defending against an alleged discrimination claim that occurred years in the past. The center filed an amicus brief asking the justices to strictly enforce the law and require workers to follow procedures designed to uphold an employer's right to defend themselves against alleged claims.
The decision in Ledbetter v. Goodyear Tire & Rubber Co. requires employees to file a complaint with the Equal Employment Opportunity Commission within 180 days of an employer's alleged action of Title VII discriminatory treatment in compensation. NFIB hailed the decision as a victory for small-business owners, who should not be required to defend themselves against an alleged action that occurs years in the past.
However, the decision outraged civil-rights and labor activists, who wasted no time voicing their concerns to Congress and demanding that the law in question be changed. Critics, including the leadership in both the U.S. House and Senate, argue that the 180-day time limit is unworkable for pay-disparity claims because workers, who are typically female, are initially unaware that they aren't being compensated at the same level as male counterparts for comparable work.
NFIB is paying close attention to this issue as Congress reevaluates Title VII pay-disparity claims, urging members to keep in mind how any changes to the law will affect a small-business owner's right to defend themselves against Title VII allegations.
