09/ 26/ 2007
Bill would reverse Supreme Court ruling and force small-business owners to defend past employment decisions
In a 225–199 vote, the U.S. House passed H.R. 2831, the Ledbetter Fair Pay Act of 2007, a bill that we opposed in a Key Vote. The bill now moves to the Senate, where Sen. Edward Kennedy introduced similar legislation.
H.R. 2831 created a new paycheck rule that dissolves any statute of limitation for an employee filing a compensation discrimination charge with the Equal Employment Opportunity Commission. This legislation takes retroactive action to overturn a recent NFIB Legal Foundation victory in Ledbetter v. Goodyear Tire & Rubber Company, where the U.S. Supreme Court ruled to uphold the statute of limitations for discrimination claims.
We strongly oppose this bill. The current requirements encourage employees and employers to address discrimination allegations right away in order to mitigate workplace discrimination. This legislation would remove any incentive for employees to act immediately if they suspect discrimination and will allow claims of discrimination to be based on an employment decision made in the distant past.
"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," says Dan Danner, NFIB executive vice president of public policy and political.
NFIB.com
At press time, the Senate was expected to take up the companion bill, S. 1843. Find out what happened at www.NFIB.com/labor.
