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14
Aug
2007

Congress Acts To Overturn The Supreme Court’s Recent Wage Discrimination Decision

Just two months after the U.S. Supreme Court issued a decision making it harder for employees to bring pay discrimination claims under federal law, Congress has taken steps to reverse the high court’s ruling and expand the damages that employees can recover in certain types of discrimination cases.


Charlotte-Gastonia-Rock Hill, NC-SC (1888PressRelease) August 14, 2007 - Author: Stephen Allred, Employer Services Group, Helms Mulliss & Wicker PLLC

Just two months after the U.S. Supreme Court issued a decision making it harder for employees to bring pay discrimination claims under federal law, Congress has taken steps to reverse the high court’s ruling and expand the damages that employees can recover in certain types of discrimination cases. The House has passed one bill in response to the Supreme Court’s ruling, and the Senate is now considering legislation prompted by the case.

In the Ledbetter v. Goodyear, although a jury found that Goodyear had unlawfully discriminated against Ledbetter based on her gender and awarded her substantial damages, the Supreme Court affirmed the decision to dismiss her claim in its entirety because it was not timely filed.

Last week, the U.S. House of Representatives passed the Lilly Ledbetter Fair Pay Act of 2007, a bill designed to overturn the May 29, 2007 Supreme Court ruling in Ledbetter v. Goodyear Tire & Rubber Co.

The Lilly Ledbetter Fair Pay Act of 2007 amends various federal discrimination laws to provide that an unlawful employment practice occurs each time an employee receives pay that is the result of a discriminatory compensation decision.

Right after the House passed the Ledbetter Fair Pay Act, Senator Ted Kennedy introduced a bill that would repeal limits on damages that federal law currently imposes on the amount that can be awarded to employees in certain types of federal discrimination claims.

The Newly Proposed Equal Remedies Act of 2007 would remove the compensatory and punitive damage caps for violations of the anti-discrimination laws under Title VII (which currently range between $50,000 to $300,000, depending on the size of the employer).

The legislation that has been introduced in the wake of the Supreme Court’s ruling in the Ledbetter v. Goodyear case could, if enacted, greatly expand the discrimination claims and damages that employees are entitled to pursue under federal law.

About Helms Mulliss & Wicker:

HMW is recognized as one of America’s Best Law Firms by Corporate Board Member magazine, ranked as a Top Ten Bond Counsel by The Bond Buyer and is named a Go-To Law Firm by Corporate Counsel magazine. The firm employs more than 135 lawyers, 20 of whom have been designated Super Lawyers in the 2007 North Carolina Super Lawyers magazine. HMW focuses on three practice groups: commercial litigation, complex finance and corporate law. Within the practice groups, specialty areas include: government relations, securities, mergers & acquisitions, employer services, private equity and others. The firm represents Fortune 100 companies, the nation’s largest financial institutions as well as many high-growth and start-up companies. Helms Mulliss & Wicker maintains offices in Charlotte, Raleigh and Wilmington, NC. For additional information, visit www.hmw.com.

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Mike Gauss

Articulon