Goodyear/Ledbetter Legislation Approved in US

What began as a pay dispute between Goodyear and a former employee has worked its way through the US House of Representatives. To minimise the impact of a Supreme Court ruling in favour of the tyremaker in the recent Ledbetter v. Goodyear case, which many believe will severely hamper the ability of employees to seek legal remedies to pay discrimination disputes, the House approved a piece of legislation allowing workers to file a grievance within 180 days of receiving a pay cheque that reflects a discriminatory pay decision — even if the decision itself was made months or years before.

This new legislation, known as the “Lilly Ledbetter Fair Pay Act of 2007,” was accompanied by another bill that would repeal current federal limits on fiscal damages that can be awarded to employees in certain types of discrimination claims. The “Equal Remedies Act of 2007” would remove the current upper limit on claims for breaches of anti-discrimination laws. These current limits are between US$50,000 and $300,000 – the precise ceiling is determined by the size of the employer.

While both bills have received praise from workers’ and equal rights groups, employers are viewing the new legislation warily. Goodyear has not commented on the passing of the bill through the House of Representatives.