Chamber Opposes House Vote to Overturn Supreme Court Decision in Wage Discrimination Case

Supreme Court Decision in Wage Discrimination Case

Says Bill Would Harm Civil Rights Laws

WASHINGTON, DC—The United States Chamber of Commerce criticized House passage of H.R. 2831, the Ledbetter Fair Pay Act of 2007, a bill that will both overturn the recent Supreme Court decision in Ledbetter v. Goodyear Tire & Rubber Co. Inc. and make other significant changes in numerous civil rights laws.

"Passage of this bill, without even one hearing on its provisions, was a dangerous rush to judgment in a matter as important as wage discrimination," said Randel Johnson, Chamber vice president for Labor, Immigration and Employee Benefits. "The legislation sweeps much more broadly than reversing the Ledbetter case and makes other major troublesome changes in civil rights law, effectively doing away with statutes of limitations, expanding the class of individuals that can bring cases, among other problems. The result will be more frivolous claims against employers and wasted litigation costs that will only benefit lawyers."

In the Ledbetter v. Goodyear case, the Court rejected the so-called "paycheck rule" and held that the statute of limitations begins to run from the time a discriminatory decision is made and communicated to the employee and is not restarted every time a paycheck is issued. The Chamber strongly supported the Supreme Court's decision in the case.

"The bill is far broader than a simple "fix" for Ledbetter. Instead, it is so broadly drafted that it would impose significant changes in Title VII, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Rehabilitation Act," said Johnson.

The Chamber supports equal employment opportunity and appropriate antidiscrimination laws. Voluntary mediation and prompt resolution of disputes are only possible when claims are raised in a timely manner. The law's purpose cannot be served if plaintiffs are allowed to wait for years before filing a claim.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than 3 million businesses and organizations of every size, sector, and region.

# # #

07-142