The U.S. House of Representatives Jan. 9 passed two pieces of legislation addressing pay discrimination that will lead to frivolous lawsuits. The Lilly Ledbetter Fair Pay Act (H.R. 11), which passed by a vote of 247-171, establishes a six-month statute of limitations for individuals to sue their employers for pay discrimination. The Paycheck Fairness Act (H.R. 12), which passed by a vote of 256-163, expands the punitive and compensatory damages available for violations of the Equal Pay Act.   

Under the Lilly Ledbetter Fair Pay Act, the six-month period dates from the time the employee receives their last paycheck, effectively resetting the clock on the statute of limitations with each paycheck.  Previously, the six-month period dated from the time the individual was first paid the employer.  

“ABC members across the country strongly oppose unlawful discrimination of any kind,” ABC stated in a letter sent before the vote to members of the U.S. House of Representatives expressing opposition to both bills. “The consequences of H.R. 11 are massive and would result in countless claims being filed based on alleged acts that could have occurred decades ago, well after memories have faded, documents and witnesses have disappeared and businesses have changed hands or no longer exist.  

“Protections already exist to ensure that plaintiffs have additional time to file a claim,” the letter continues. “This current system protects all parties involved by encouraging employees to quickly file a claim and creating an opportunity where employers can immediately remedy a situation when an act of discrimination has occurred, while also providing the courts with a vehicle to extend the time to file a claim.”  

The Paycheck Fairness Act expands the punitive and compensatory damages available for violations of the Equal Pay Act (EPA).  It also burdens employers with proving that any disparities in wages are job-related rather than sex-based, and bars employers from retaliating against workers who discuss salary information with their coworkers.  

“H.R. 12 includes changes to the EPA that would make it easier to file large class actions against employers and to make it more difficult for employers to justify legitimate pay disparities,” the letter continued.  “It would also force the Labor Department to return to debunked statistical models and inaccurate survey tools in an effort to enforce civil rights laws among federal contractors.”  

Both pieces of legislation will be considered in the Senate next week.  

To view a PDF of the letter, click here.  

To send a letter to your Senator to oppose these bills, click here.  

For more information, contact Kristen Swearingen at ABC, swearingen@abc.org.