Lilly Ledbetter Fair Pay Act

DEFINITION of 'Lilly Ledbetter Fair Pay Act'

A law signed by Congress on January 29, 2009, that restored worker protections against pay discrimination. The Lilly Ledbetter Fair Pay Act allows individuals who face pay discrimination to seek rectification under federal anti-discrimination laws. The law clarifies that discrimination based on age, religion, national origin, race, sex and disability will "accrue" every time the employee receives a paycheck that is deemed discriminatory.

BREAKING DOWN 'Lilly Ledbetter Fair Pay Act'

The act is named after a production supervisor at a Goodyear tire manufacturer in Alabama who filed a lawsuit in 1998 stating that her pay reflected sex discrimation. Ledbetter's appeal was eventually rejected by the Supreme Court, but the ruling ignited legal groups, who saw the court's decision as a setback for women and civil rights. This led to the formation of a bill that bore Ledbetter's name.

One unfortunate area of pay discrimination historically has been the pay gap between men and women. As of 2009, it is estimated that on average, women are paid only 78 cents for each dollar men are paid for comparable work. The gap becomes wider when examining pay data for women of color, according to the National Women's Law Center. The Lilly Ledbetter Fair Pay Act was considered a positive step in advancing the fair treatment of workers.

RELATED TERMS
  1. Lilly Ledbetter Fair Pay Act

    A federal law designed to ensure equal pay for all workers, regardless ...
  2. Equal Employment Opportunity Commission ...

    The agency that is responsible for enforcing federal laws regarding ...
  3. Age Discrimination In Employment ...

    A federal statute protecting "certain applicants and employees" ...
  4. Price Discrimination

    A pricing strategy that charges customers different prices for ...
  5. Fair Housing Act

    This law (Title VIII of the Civil Rights Act of 1968) forbids ...
  6. Americans With Disabilities Act ...

    Legislation passed in 1990 that prohibits discrimination against ...
Related Articles
  1. Personal Finance

    What is Price Discrimination?

    Price discrimination occurs when a company charges different customers different prices for the same goods or services.
  2. Managing Wealth

    What Accounts for One-Third of the Wage Gap (WMT)

    Women who work full time still make less than men who have the same qualifications. One third of the pay gap may be due to gender bias and discrimination.
  3. Personal Finance

    4 Top Changes Obama Has Made with His Mandates

    Learn how Obamacare, equal pay for women and an executive order on immigration represent some of Obama's biggest changes during his presidency.
  4. Retirement

    Retirement Costs: Men Vs Women

    Understanding certain differences between the sexes can help couples and singles make better financial plans for retirement.
  5. Financial Advisor

    These Investors Needs More Advisor Attention

    Women live longer than men and their post-retirement finances are in jeopardy. A new report by the National Institute for Retirement Security shows why.
  6. Insights

    High Paying Jobs With the Largest Wage Gaps

    Even female CEOs and surgeons can't avoid wage discrimination.
  7. Retirement

    Retirement Costs: Men vs. Women

    When it comes to the cost of living in retirement, men and women aren't equal after all.
  8. Financial Advisor

    Wealthy Men and Women Investors: 4 Key Differences

    Research validates that wealthy men and women invest differently. Here's why—the insights may help advisors better tailor their services to clients.
  9. Markets

    Top 5 Occupations With the Widest Gender Income Gaps

    Find out which occupations have the widest pay gaps between male and female pay, and why the gaps seem to widen in high-paying fields.
  10. Managing Wealth

    3 Common Financial Mistakes for Women to Avoid

    Find out why of more than 4,000 Americans, women are more likely than men to have no savings or investments.
RELATED FAQS
  1. How do companies use price discrimination?

    Learn about price discrimination, the three different types of price discrimination and how companies use price discrimination ... Read Answer >>
  2. What is the average debt/equity ratio of companies in the electronics sector?

    Learn about the three types of price discrimination, and understand how each can benefit a company in terms of selling its ... Read Answer >>
  3. What are the different types of price discrimination and how are they used?

    Understand the difference between the three major types of price discrimination and how each is used in practical business ... Read Answer >>
  4. What profit margin is average for a company in the electronics sector?

    Understand what types of common industries practice price discrimination. Learn about the three types of price discrimination ... Read Answer >>
  5. What is the difference between product differentiation and price discrimination?

    Learn about product differentiation and price discrimination, how the two strategies are used in marketing and economics, ... Read Answer >>
  6. What are some examples of businesses that use market segmentation?

    Find out what types of businesses use market segmentation and how this strategy helps companies market their products more ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center