Lilly Ledbetter Fair Pay Act

AAA

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.

INVESTOPEDIA EXPLAINS '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. Small Business Job Protection Act ...

    An act of legislation that increased the minimum wage, simplified ...
  2. Hiring Freeze

    A situation whereas an employer has temporarily put into place ...
  3. Earned Income

    Income derived from active participation in a trade or business, ...
  4. Salary Freeze

    The action of a company suspending salary increases for a period ...
  5. Layoff

    1. When a company eliminates jobs regardless of how good the ...
  6. Remuneration

    Payment or compensation received for services or employment. ...
Related Articles
  1. Professionals

    Tips For Fitting In At Your Brokerage Firm

    Part of starting a successful career as a broker is finding the right place to work.
  2. Options & Futures

    Find Your Niche In The Financial Industry

    In this article, we'll give you the tools you need to discover the financial career that fits you the best.
  3. Options & Futures

    Earn Big Bucks With A Specialized Financial Career

    Choosing to specialize may be easier for you and more beneficial to your clients.
  4. Retirement

    Financial Career Shift: Get In The Driver's Seat

    Before you agree to work for another investment firm, be sure you know what you're getting into.
  5. Retirement

    Transfer Retirement Savings When You Change Jobs

    Half of Americans lose their nest eggs when they switch careers. Learn why you should avoid this trap.
  6. Personal Finance

    How Minimum Wage Impacts Unemployment

    We explain how the minimum wage affects unemployment, public assistance, and the economy overall.
  7. Economics

    How is the invisible hand affected in a communist or socialist economy?

    Discover why the invisible hand of the market is compromised by socialist and communist economies, where the government controls the means of production.
  8. Economics

    What is the affect of the invisible hand on the government?

    Find out why government policy goals are often frustrated by the same forces that guide the invisible hand of the market towards efficient outcomes.
  9. Bonds & Fixed Income

    How Diaspora Bonds Work

    Developing and emerging nations with sizable populations living overseas are using diaspora bonds to raise financing from emigrants.
  10. Economics

    How does the invisible hand affect a capitalist economy?

    Take a deeper look at how the invisible hand of the market works and why it is so crucial for understanding how capitalist economies function.

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center