How Much Do You Know About The Ledbetter Fair Pay Act?

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Lilly Ledbetter worked for the Goodyear Tire & Rubber Company in their Alabama plant where she was a supervisor. After an anonymous coworker slipped her a note telling her that the company was cheating her on her pay, she decided to sue her employer. Lilly had promised not to discuss any salary information with anyone but her family, so she had no way of knowing she was being underpaid. Upon investigating, it was found she was paid 15% less than her lowest paid male counterpart and 40% less than her highest paid male counterpart. She filed suit and was awarded $3.8 million dollars. The Supreme Court overturned the ruling because the law required her to have filed her lawsuit within 180 days of her first unfair paycheck. Of course, having followed company policy about not talking about wages, there was no way she could have been aware of the first act of discriminatory pay. One of the first acts of the Obama administration was the signing of this act into law. Now test your knowledge of this important legislation.

  • 1.

    Eric, a senior salesperson in R & R Distributing, during a conference lunch at a local restaurant, began talking about the new motorcycle he would buy with his recent $10,000 bonus. Alice, a motorcycle enthusiast herself, was shocked. She was salesperson in the same department as Eric; she had a good year of sales, and her bonus wouldn’t let her buy much more than old Honda 90. How could her bonus be less than one-third of what Eric made when her sales figures were as good as his? To her, this must be sex discrimination. What factor below would be the most important for Alice to establish to support a claim of pay discrimination?

An historical review of Alice’s compensation, for the last 8 years, shows her salary starting out on par with the others. Some four years ago, after giving birth to her daughter and filing for a baby-bonding leave, Alice’s pay raises and bonuses were consistently lower than her male counterparts by at least 20%. Under the Lilly Ledbetter Fair Pay Act, the amount of back pay to which Alice would be entitled would be?

Poll: Should TBK have been fired?

Poll: Should TBK have been fired?