In this article, we discussed the background of the Lilly Ledbetter Fair Pay Act, how it works, and how employers should comply with it. The Fair Pay Act will likely increase litigation because employees can file a claim based on every unlawful employment practice, including each paycheck they receive based on a discriminatory decision.
Additionally, the Fair Pay Act indicates that any type of compensation which is based on a discriminatory act constitutes an act of discrimination. So, the next question becomes whether benefits received by employees, such as 401(k) payments, could constitute a new act of discrimination every time an employee receives a benefit payment. There will likely be more litigation to solve such issues. In the meantime, employers should take all measures to comply with the Lilly Ledbetter Fair Pay Act.