Ledbetter Fair Pay Act of 2007 Fact Sheet
Leadership Conference on Civil Rights - July 30, 2007
What the Bill Does
- The Ledbetter Fair Pay Act of 2007 would reverse the Supreme Court's decision in Ledbetter v. Goodyear Tire & Rubber Co., which severely limited the ability of victims of pay discrimination to sue under Title VII of the Civil Rights Act of 1964
- Makes pay discrimination date from the last discriminatory paycheck instead of from the date of last discriminatory raise or pay decision, as Congress intended. A discriminatory pay or raise decision may be made many years before a worker is aware of it and can file suit.
- If an employer is found engaging in pay discrimination, workers are entitled to back pay dating to two years prior to the claim filing, in addition to other damages awarded by the court.
Why We Need the Ledbetter Fair Pay Act of 2007
- Women, who comprise 46 percent of the workforce, have historically been subject to pay discrimination, one of the reasons they continue to average of 77 cents for every dollar earned by men.
- If women in the workforce earned the same amount as men working in comparable positions -- the same number of hours, with the same education, same age, union status and live in the same region of the country-- their annual family income would rise by about $4,000, cutting the poverty rate for women by more than 50 percent.
- In a study of management positions in 10 industries that together employ over 70% of women in the workforce, the U.S. Government Accountability Office found unequal pay among men and women managers.
- Even when controlling for educational levels and years worked, unmarried women in the workforce today will receive on average, about $8,000 a year less in retirement income than their male counterparts, because the pay gap during prime working years appears in their pensions and savings.
- Strengthens the Equal Pay Act, 1964 Civil Rights Act, and the Age Discrimination in Employment Act to ensure older workers can recover money damages in pay discrimination cases.