08/01/2007
H.R. 2831 would eliminate statute of limitations on pay disputes
In a 225-199 vote, the U.S. House passed H.R. 2831, the Ledbetter Fair Pay Act of 2007, a bill that NFIB had opposed as a "Key Vote" for small business. The bill now moves to the Senate, where Sen. Edward Kennedy (Mass.) introduced similar legislation last month.
H.R. 2831 amends Title VII of the 1964 Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Rehabilitation Act to create a new paycheck rule, dissolving any statute of limitation for an employee filing a compensation discrimination charge with the Equal Employment Opportunity Commission. This ill-considered legislation takes retroactive action to purportedly overturn a recent decision in Ledbetter v. Goodyear Tire & Rubber Company, where the U.S. Supreme Court ruled to uphold the statute of limitations for claims to be made alleging discrimination.
NFIB strongly opposes the legislation, as it will create disincentives for small-business owners to offer their employees retirement benefits. The current filing requirements encourage employees and employers to address discrimination allegations right away in order to mitigate workplace discrimination. By adopting a paycheck rule, this legislation removes the incentive for an employee to act immediately if they suspect discrimination and will allow claims of discrimination to be based off of an employment decision made in the distant past.
“Instead of encouraging employees to address allegations of discrimination, H.R. 2831 would allow employees to wait to file a discrimination claim until the supervisor who made the decision is no longer available to testify and defend their decision,” said Dan Danner, executive vice president of NFIB. “Employers deserve the opportunity to defend an employment decision in a timely manner so that they can address the allegation and move on with running and growing their business.”
Last month, Sen. Kennedy introduced S. 1843, legislation similar to H.R. 2831, which has been sent to the Senate Committee on Health, Education, Labor and Pensions for consideration.
Protect your business from lawsuits! Contact your senators and tell them to vote "No" on H.R. 2831 and S. 1843.
