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Some complainants in Equal Employment Opportunity Commission's closed cases that involved wage issues may receive new right-to-sue notices from the agency. The Commission seems to be reviewing these cases in response to the signing of the Lilly Ledbetter Fair Pay Act early this year. This is an important development for employers because Congress has provided that individuals may file a civil action within 90 days after the notice of right to sue is given by the EEOC. 29 C.F.R. § 1601.28(e)(1). Thus, a new right-to-sue notice statutorily confers on claimants an additional 90 days to commence suit in cases that would have been barred by the original statute of limitations.
The Lilly Ledbetter Fair Pay Act was signed by President Barack Obama on January 29, 2009, but it was made retroactive to May 28, 2007. The EEOC then contacted individuals in closed cases who have filed charges that included a wage issue. It asked whether the individual may have been affected by the Supreme Court's decision in the Ledbetter v. Goodyear Tire case.
In Ledbetter, the Supreme Court decided that the statute of limitations to commence suit under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Rehabilitation Act of 1973, and the Age Discrimination in Employment Act begins to run from the date the employer made the complained-of discriminatory compensation decision. This was reversed by the Lilly Ledbetter Fair Pay Act, which provides that the statute of limitations restarts each time an employee receives a paycheck based on a discriminatory compensation decision.
If the individual responded to the EEOC that he did not file a lawsuit on the charge and he was affected by the Ledbetter decision, then the agency determined that the individual was eligible to receive a new notice of the right to sue for the charge. The individual then may file a civil action within 90 days after the notice of right to sue.
Employers should expect to see new civil claims for discriminatory compensation as a result of the EEOC's actions. Jackson Lewis attorneys are available to conduct wage and hour audits and answer your questions about what your company can do to minimize charges of discriminatory compensation.
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