Lilly Ledbetter Fair Pay Act

The first piece of legislation signed by our new President represents a victory for women and families. Yesterday, Obama signed into law the Lilly Ledbetter Fair Pay Act. The law changes the statute of limitations in filing a complaint about unfair wages.

The law was passed in response to a Supreme Court ruling in 2007 in the Ledbetter v. Goodyear case. In that ruling the Supreme Court rejected Ledbetter's claim of pay discrimination because they said she failed to file her complaint within six months of the first act of discrimination. Ms. Ledbetter did realize the pay disparity between her and her male counterparts until years after she had been promoted into management.

The new law basically states that the statute of limitation 'clock' renews every time someone receives a paycheck. As a result, If you learn about a pay disparity years after a promotion, as long as your last paycheck was within the past six months, you can still make a claim. Read more on Yahoo News.

This legislation is important because employers work hard to make sure employees are not aware of the salaries of their peers. Most companies don't want employees discussing their pay for many reasons such as a fear that employees will use this information to negotiate for better salaries. As a result, many women do not find out that they are paid less than their male peers until well after a promotion (that is, if they ever find out). This law provides more incentive for employers to pay fairly because the consequences of an act of discrimination do not fade as quickly.

For women looking for flexible work, it is important to remember that there should not be a penalty for working in a flexible work arrangement. That is, you should be paid for getting your work done. Flexible work should not be considered a "perk" that you get in lieu of fair compensation. If you cut back to part-time, your pay rate should be reduced proportionately. If you cut back your hours 20%, your pay should be reduced 20%. Further, if you stay in a full-time role, your pay should not be cut at all just because you work a flexible schedule. If you are doing the same job, you should receive the same pay.

Our rights are only protected under employment discrimination laws if we exercise them. If you feel that you may have been discriminated against in your pay or other condition of employment, learn about your rights from the Equal Employment Opportunity Commission.