Supreme Court Limits Pay Discrimination Claims

On May 29, 2007, the U.S. Supreme Court issued an important ruling for employers titled Ledbetter v. Goodyear Tire & Rubber Co., No. 05-1074 (U.S. May 29, 2007). In a 5 to 4 decision, the Supreme Court held that to challenge alleged pay discrimination under Title VII, employees must file a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) within 180 or 300 days, depending on the state, after each allegedly discriminatory pay decision. Otherwise, the claim will be barred by Title VII’s statute of limitations. There are three key aspects to the case, each of which is explained below.