Fair Pay: Frequently Asked Questions

Lilly Ledbetter Fair Pay Act of 2009

1. What is the Lilly Ledbetter Fair Pay Act of 2009?
2. Why is the Lilly Ledbetter Fair Pay Act important?
3. Does the Lilly Ledbetter Fair Pay Act only address discrimination based on sex?
4. Will the Lilly Ledbetter Fair Pay Act end pay discrimination and close the wage gap?
5. How is the Lilly Ledbetter Fair Pay Act different from the Paycheck Fairness Act?

Paycheck Fairness Act

1. What is the Equal Pay Act?
2. What would the Paycheck Fairness Act do?
3. Why does the Equal Pay Act need to be improved?
4. Has the Paycheck Fairness Act passed Congress?
5. How is the Paycheck Fairness Act different from the Fair Pay Act?

Filing a Complaint

• I think I’m being subject to discrimination in the workplace. What should I do?

Lilly Ledbetter Fair Pay Act of 2009

1. What is the Lilly Ledbetter Fair Pay Act of 2009?

The Lilly Ledbetter Fair Pay Act, signed into law on Jan. 29, 2009, by President Obama, restores the law that allows individuals subjected to unlawful pay discrimination based on sex, race, color, national origin, age, religion or disability to go to court to challenge each discriminatory paycheck they receive. The Act reverses the Supreme Court’s decision in Ledbetter v. Goodyear Tire & Rubber Co., which held that those subject to pay discrimination have only 180 (or, in some cases, 300) days from the date the employer first decides to pay them less to file a discrimination claim. The Act reinstates the law that had long existed before the Supreme Court’s decision and treats each paycheck as a separate discriminatory act that starts a new 180-day clock.

Learn more about the Lilly Ledbetter Fair Pay Act of 2009.

2. Why is the Lilly Ledbetter Fair Pay Act important?

Even though Congress outlawed wage discrimination based on sex more than four decades ago, women continue to be paid, on average, only 77 cents for every dollar paid to men. In 2007, the Supreme Court made it much more difficult for women to challenge the discrimination that is a significant factor in that wage gap. The Court ruled that Lilly Ledbetter, who was paid less than her male co-workers for nearly two decades, should have sued when the original decision to pay her less was made, and not when she received her paychecks — even though those paychecks continued to be discriminatorily reduced for the entire time she worked for the company. This ruling made no sense, among other things since most workers don’t know what their coworkers make, much less whether any difference is the result of discrimination. The Lilly Ledbetter Fair Pay Act restores the prior common sense rule, which allows any victim of pay discrimination the right to challenge any discriminatory paycheck she receives.

3. Does the Lilly Ledbetter Fair Pay Act only address discrimination based on sex?

No — the Lilly Ledbetter Fair Pay Act affects all kinds of pay discrimination claims — cases where people are paid less because of their race, color, national origin, religion, age or disability.

4. Will the Lilly Ledbetter Fair Pay Act end pay discrimination and close the wage gap?

The short answer is no. Although the Lilly Ledbetter Fair Pay Act was an important down payment on the battle against wage discrimination, there is still more work to be done. For example, the Equal Pay Act needs to be reformed. And the remedies for victims of pay discrimination are still insufficient.

5. How is the Lilly Ledbetter Fair Pay Act different from the Paycheck Fairness Act?

The Paycheck Fairness Act updates and strengthens the Equal Pay Act, which was enacted in 1963. While the Lilly Ledbetter Fair Pay Act, which amends Title VII, the Americans with Disabilities Act, the Age Discrimination in Employment Act, and the Rehabilitation Act, restores the law that existed before the Supreme Court’s 2007 decision in the Ledbetter case with regard to the timing of legal challenges, the Paycheck Fairness Act would make several important improvements to the Equal Pay Act that would provide women better tools to fight pay discrimination.

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Paycheck Fairness Act

1. What is the Equal Pay Act?

The Equal Pay Act, enacted in 1963 to address the problem of gender-based wage inequality, offers a set of targeted tools to address the long-standing problem of pay inequity. Because the Equal Pay Act’s provisions can be different than those under Title VII, it can sometimes offer the best avenue for relief to victims of sex-based discrimination.

2. What would the Paycheck Fairness Act do?

The Paycheck Fairness Act would toughen remedies available for sex-based pay discrimination, and allow women to receive compensatory and punitive damages for violations of the law. The Act would prohibit unfair retaliation against employees who discuss pay and pay disparities on the job, strengthen enforcement tools used to uncover pay discrimination and encourage employers to voluntarily evaluate their own pay practices, among other things. For a detailed description of the Paycheck Fairness Act, see our fact sheet.

3. Why does the Equal Pay Act need to be improved?

Despite the broad language and purpose of the Equal Pay Act, courts have interpreted it narrowly and created several loopholes that have limited it’s protections against sex discrimination. For example, some courts have permitted employers to pay discriminatory wages for wide ranging number of reasons as long as the employer didn’t explicitly state that it was discriminating on the basis of sex. The Equal Pay Act also has been interpreted to require that a woman find a man paid more for doing the same job at the very facility at which she works, barring her from comparing her salary to the wages of men doing her job only ten miles down the road. In addition, many employers have broad policies that prevent employees from discussing or comparing wages. And the government currently has no way to track employer pay practices in particular job categories or to identify any broad-based problems. The Paycheck Fairness Act would address all of the above problems.

4. Has the Paycheck Fairness Act passed Congress?

The Paycheck Fairness Act passed in the House together with the Lilly Ledbetter Fair Pay Act of 2009. It is currently pending in the Senate.

5. How is the Paycheck Fairness Act different from the Fair Pay Act?

The Paycheck Fairness Act would improve the Equal Pay Act to provide better enforcement for sex-based wage discrimination where employees receive unequal pay for equal work. The Fair Pay Act, which has been introduced in the past, prohibits wage discrimination on the basis of sex, race or national origin for employees working in equivalent jobs, or jobs where the effort, responsibility, and working conditions are equivalent in value, even if the jobs are dissimilar.

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Filing a Complaint

I think I’m being subject to discrimination in the workplace. What should I do?

If you think you are being subject to discrimination by your employer, contact the Equal Employment Opportunity Commission. To read more about workplace discrimination and learn how to file a complaint, visit the EEOC website. Note that complaints of discrimination must be filed with the EEOC (or with a state fair employment practices agency) before you can go to court to challenge the discrimination. Also note that complaints must be filed within 180 – or, in some states, 300 – days of the date of the discrimination against you. Don’t delay!