US Court Backs Goodyear in Pay Discrimination Case

A ruling handed down by the US Supreme Court has set a precedent limiting employees’ ability to sue an employer for pay discrimination in cases relating to decisions made years earlier. The court decided in a 5-4 ruling on a case centred upon the application of deadlines for complaining about discriminatory pay decisions that it would become too difficult for employers to mount a defence against any claims “arising from employment decisions that are long past.”

The plaintiff, Lilly Ledbetter, instigated legal action against Goodyear Tire & Rubber based upon her claims that after 19 years of employment at the company’s facility in Gadsden, Alabama she was earning US$6,000 a year less than the lowest-paid male employee performing the same work. Ms Ledbetter argued that her gender was the primary causal factor for this pay inequality, which she claimed been ongoing for a number of years. A jury initially made a decision in Ledbetter’s favour and awarded her $3.8 million, later reduced to $360,000.

During the appeal case Goodyear presented the counter argument that the deadline set in US law for making complaints about discriminatory pay decisions – 180 days – is meaningless if employees can claim discrimination on decisions dating back years, which due to the passage of time are very difficult to defend. The company also denied discriminating against Ledbetter, claiming she received periodic pay increases despite being ranked near the bottom of her group of workers.

The earlier verdict was overturned due to the length of time Ledbetter waited to begin her legal action. The appeals court said Ledbetter was primarily complaining about decisions made by her supervisors long ago, and that the deadline for raising allegations of discrimination had long past. Ledbetter reportedly didn’t claim during the allowed timeframe as she had not wished to “rock the boat.”