On January 29, 2009, President Obama signed into law the Lily Ledbetter Fair Pay Act of 2009. The law is retroactive to May 28, 2007, coinciding with the United States Supreme Court’s decision in Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618 (2007). The Act expressly overturns the Supreme Court’s decision in Ledbetter by specifying that a discriminatory pay decision, which begins the statute of limitations for filing a pay discrimination claim, occurs each time a discriminatory paycheck is issued, not just the first time an employer makes an adverse pay-setting decision.
Under the Act, an unlawful employment practice occurs with respect to disparate pay when (1) a discriminatory compensation decision or other practice is adopted; (2) an individual becomes subject to the decision or practice;