Ledbetter V. Goodyear Tire & Rubber Co.

Ledbetter V. Goodyear Tire & Rubber Co.

Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618 (2007), is an employment discrimination decision of the Supreme Court of the United States. Employers cannot be sued under Title VII of the Civil Rights Act of 1964 over race or gender pay discrimination if the claims are based on decisions made by the employer 180 days ago or more. Justice Alito held for the five-justice majority that each paycheck received did not constitute a discrete discriminatory act, even if affected by a prior decision outside the time limit. Ledbetter's theory of the “paycheck accrual rule” was rejected . The decision did not prevent plaintiffs from suing under other laws, like the Equal Pay Act, which has a three-year deadline for most sex discrimination claims, or 42 U.S.C. 1981, which has a four-year deadline for suing over race discrimination.

This was a case of statutory rather than constitutional interpretation, explaining the meaning of a law, not its constitutionality. The plaintiff in this case, Lilly Ledbetter, characterized her situation as one where "disparate pay is received during the statutory limitations period, but is the result of intentionally discriminatory pay decisions that occurred outside the limitations period." In rejecting Ledbetter's appeal, the Supreme Court said that "she could have, and should have, sued" when the pay decisions were made, instead of waiting beyond the 180-day statutory charging period. The Court did leave open the possibility that a plaintiff could sue beyond the 180-day period if she did not, and could not, have discovered the discrimination earlier. The effect of the Court's holding was reversed by the passage of the Lilly Ledbetter Fair Pay Act in 2009.