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U.S. House of Representatives passes pro-labor bills

January 20, 7:03 AMBusiness Law ExaminerMatthew Nelson
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Today's inauguration of Barack Obama has prompted the U.S. House of Representatives to pass two
bills that expand workers' rights regarding equal pay that President Bush had stated an intent to veto. A January 10 Associated Press article reported that Obama is expected to support these pieces of legislation.

If enacted, the Lilly Ledbetter Act would expand the amount of time in which someone could sue an employer regarding a claim that the amount of compensation that they received was illegally discriminatory.

Current law requires filing such a lawsuit within 180 days of a company establishing the disputed pay; the proposed law would expand that period by years by treating each paycheck that the supposedly wronged employee receives as a new violation of the legal equal-pay requirement.

The Paycheck Fairness Act proposes increasing the amount that a court can award an employee regarding a pay discrimination claim; this bill also places new restrictions on the defenses that an employer can assert regarding such claims.

The potential cost to struggling businesses regarding an expected increase in the number of pay discrimination lawsuits that are filed is one stated concern regrading these bills.

I predict that the anticipated free ride that democrats will enjoy for the next several months will result at least in these bills becoming law and that equally anticipated abuse of the valid spirit of them will result in amendments that will seek a proper balance between employees receiving the compensation to which they are entitled and employers having a reasonable
opportunity to defend against a claim of unequal pay.

As always, comments are welcome as additions to this entry or as e-mail to nelsonexaminer@gmail.com.

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