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Gilding The Lilly: Not A Tax, But...

As I noted here last month, the first bill President Obama signed into law dramatically expanded the protection offered by (and the prospects of employer liability under) Title VII?s prohibition of job discrimination. I quoted the following (and more) from Stuart Taylor:

The new law will virtually wipe out the 300-day time limit (180 days in Alabama and some other states) during which employees can file claims of discrimination under Title VII of the 1964 Civil Rights Act. Disgruntled employees will now be free to wait many years before hauling employers into court for supposedly discriminatory raises, promotions, or any other actions affecting pay.

The longer the wait, the more difficult it will be for the employer to contest an employee?s one-sided and perhaps false account of the case, because key witnesses may have retired or died and records such as performance evaluations may have been discarded.

Indeed, some of the Ledbetter law?s vague language could be construed as opening the doors for people to sue a company even years after retiring, on the theory that each new pension check is too small because of some claim of discrimination by some long-since-departed (or dead) supervisor.

The Lily Ledbetter Fair Pay Act will end up requiring, if nothing else, a new transfer of funds from employers to insurance companies and lawyers.

Berkshire Associates, a leading provider of human resources services, software, and training has interpreted the Lilly Ledbetter Fair Pay Act, and is partnering with Baltimore-based law firm, A. Jai Bonner, P.C., to share its recommendations on how companies should handle the latest impact on fair pay policy.

On January 29, 2009, The Lilly Ledbetter Fair Pay Act was signed into law by President Obama, effectively overturning a 2007 U.S. Supreme Court decision saying employees had only 180 days from the date of the first discriminatory paycheck to file a lawsuit. The new law now resets that time limit with every paycheck. Berkshire?s compensation expert, Michele Whitehead, PHR, states, ?The amendment considers each discriminatory compensation decision or practice, even if unintentional, to be unlawful. This increases a company's exposure to pay-related lawsuits and claims. Now is the time for company?s to take action to protect themselves.?

This may not be a tax, but ....

Full post as published by Discriminations on March 18, 2009 (boomark / email).