As expected, President Obama has signed the Lilly Ledbetter Fair Pay Restoration Act – the first piece of legislation he has signed into law.

The Blawg discussed the Act in detail here.  In short, it makes it easier for employees to sue for pay discrimination, even if the discrimination dates back several years.

The Act is in response to a 2007 U.S. Supreme Court ruling that required employees to file pay discrimination claims within 180 days of the employer’s initial discriminatory pay decision.  The Act extends the statute of limitations another 180 days every time a new discriminatory paycheck is issued.

Advocates of the Act argued for overturning the Supreme Court’s decision because it rewarded employers who managed to keep pay discrimination secret for six months.  Opponents argue that the Act renders the statute of limitations meaningless and will lead to an explosion of lawsuits and trial lawyer fees.

Here’s the latest on the signing from CNN.  Click here for the EEOC’s press release from new Acting Chair Stuart Ishimaru.

Yesterday, Congress sent President Obama the Ledbetter Act – expected to be the first piece of legislation he signs.

We discussed the Act in detail here.  In short, it makes it easier for employees to sue for pay discrimination, even if the discrimination dated back several years.

The Act is in response to a 2007 U.S. Supreme Court ruling that required employees to file pay discrimination claims within 180 days of the employer’s initial discriminatory pay decision.  The Act would extend the statute of limitations another 180 days every time a new discriminatory paycheck is issued.

The President invited Lilly Ledbetter — the Act’s namesake — to accompany him on his train trip to the Inauguration.  She said last week that the President “assured me that he would see me in the White House when they sign the bill.”

Advocates of the Act argued for overturning the Supreme Court’s decision because it rewarded employers who managed to keep pay discrimination secret for six months.  Opponents argue that the Act renders the statute of limitations meaningless and will lead to an explosion of lawsuits and trial lawyer fees.

Stay tuned for more.

Last night, the U.S. Senate passed the Lilly Ledbetter Fair Pay Act of 2009 by a vote of 61-36.  President Obama is expected to sign the bill.

What’s the Ledbetter Act all about?   Click here to read the entire Act.  Here’s what the new White House web site says about it:

Fighting for Pay Equity: Despite decades of progress, women still make only 77 cents for every dollar a man makes. Throughout their careers, President Obama and Vice President Biden have championed the right of women to receive equal pay for equal work. In the Illinois State Senate, President Obama cosponsored and voted for the Illinois Equal Pay Act, which provided 330,000 more women protection from pay discrimination. In the U.S. Senate, Obama joined a bipartisan group of Senators to introduce the Fair Pay Restoration Act, a bill to overturn the Supreme Court’s recent 5-4 decision in Ledbetter v. Goodyear Tire & Rubber Company. The bill will restore the clear intent of Congress that workers must have a reasonable time to file a pay discrimination claim after they become victims of discriminatory compensation. The President was also a cosponsor of Senator Tom Harkin’s (D-IA) Fair Pay Act, and President Obama will continue to promote paycheck equity and close the wage gap between men and women.

So, what does this mean?  In short, the Act lengthens the statute of limitations for filing unfair pay claims.  It’s intended to “clarify that a discriminatory compensation decision or other practice that is unlawful” under Title VII, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA) or the Rehabilitation Act of 1973 occurs “each time compensation is paid pursuant to the discriminatory compensation decision or other practice.”

When does it take effect?  Interestingly, the Act is retroactive to May 28, 2007 (the day before the Supreme Court issued the Ledbetter decision).  That means that it applies to all claims made on or after that date.

What should employers do?  It’s now even more important to ensure that your company’s pay practices are fair and consistent.  Review your policies and procedures and train your managers to help make that happen.

(Special thanks to Dan Schwartz of the Connecticut Employment Law Blog.  If you have operations in Connecticut, I highly recommend visiting his site on a daily — if not hourly — basis.)

As part of our continuing effort to educate you on where the candidates stand on key employment law issues, today we’re focusing on one of the most controversial U.S. Supreme Court decisions in recent years:  Ledbetter v. Goodyear.

The Case

Lilly Ledbetter worked for Goodyear for 19 years.  Ledbetter, a manager, was paid $3,727 a month.  The lowest-paid male manager got $4,286 a month and the highest-paid got $5,236 a month.  Ledbetter sued, alleging gender discrimination.

She lost.  In a tight 5-to-4 decision, the Court found that despite years of lower pay, Ledbetter was barred from any recovery because she failed to complain within 180 days of the first paycheck that contained lower pay.

In her dissent to the opinion, Judge Ginsburg took exception to the majority’s view and argued that the correct standard should be:  ”Each and every pay decision she did not immediately challenged wiped the slate clean.”

The Candidates

The decision has generated lots of discussion.  Here’s a quick guide to each candidate’s position on the issue . . .

Obama:  Obama is a co-sponsor of the Fair Pay Restoration Act (FPRA).  The FPRA would reverse the Ledbetter decision by giving claimants a longer period of time to file claims.

McCain:  McCain opposes the FPRA, stating that it represents “government playing a much, much greater role in the business of a private enterprise system.”  In addition, he contends that (1) altering the filing period would be unfair to employers and (2) female employees would benefit more from increased access to education and training opportunities instead.

For what it’s worth, Lilly Ledbetter has endorsed Obama.