Senate bill reverses high court ruling

WASHINGTON -- The Senate last week passed a wage discrimination bill that would make it easier for workers to sue their bosses after learning they were paid less than colleagues.

The Lilly Ledbetter Fair Pay Act of 2009 reverses a 5-4 Supreme Court decision from 2007 that narrowly defined the period for which a worker could file a court claim if they believe they are a victim of pay inequity.

It was named for an Alabama woman who lost that case and was unable to prevail over the Goodyear Tire and Rubber Co. over paychecks that were smaller than those of men doing similar work.

The bill passed 61-36, an indication of Democrats' new strength on Capitol Hill. Republicans blocked similar legislation last year, and President Bush threatened to veto it.

The House was expected to take final action on the bill soon. It could be the first major bill signed into law by President Barack Obama as the fulfillment of a Democratic campaign promise.

Sponsors said the bill strikes a blow against discrimination in the workplace by overturning an overly restrictive Supreme Court ruling.

Critics said it would invite a flood of lawsuits, putting businesses on the defensive and feathering the wallets of plaintiff attorneys.

Sen. Harry Reid, D-Nev., voted for the bill. Sen. John Ensign, R-Nev., voted against it.

Before passage, senators defeated an amendment by Sen. Kay Bailey Hutchison, R-Texas.

Arguing that the legislation was too open-ended, Hutchison proposed a lawsuit time limit of 180 days after a worker could have reasonably expected to discover a pay disparity. She said some workers might intentionally delay suing their employers in hopes of maximizing punitive damages.

But Sen. Barbara Mikulski, D-Md., said the amendment "fails to hold employees fully accountable for ongoing discrimination."

"If you are a business and want to avoid a lawsuit, there is one clear remedy. ... Pay people equal pay," Mikulski said.

The Hutchison amendment was killed 40-55. Ensign voted for it, while Reid voted against it.

HOUSE VENTS ON TARP

The House voted 270-155 to block the release of $350 billion in financial bailout funds to President Obama.

The move was purely symbolic, however, as the Senate already had given Obama the green light to spend the money.

Under the law that created the Troubled Assets Relief Program (TARP) last fall, the second half of a $700 billion bailout fund would be made available unless Congress within 15 days passed a resolution saying no.

The Senate last week said yes to releasing the funds, leaving many House members with little to do but express their unhappiness that the TARP money committed to banks and investment houses so far has done little to stem home foreclosures or stop the nation's economic slide.

Supporters of releasing the funds said Obama has committed to more transparency in how he manages the funds. But critics questioned whether it was throwing good taxpayer money after bad.

"President Obama was elected on the promise of bringing change, but another $350 billion is not change," said Rep. Virginia Foxx, R-N.C.

Reps. Shelley Berkley and Dina Titus, both D-Nev., and Dean Heller, R-Nev., voted against releasing the funds.

HOUSE SETS CONDITIONS ON TARP

The House passed a separate bill that sets conditions on how Obama could spend the $350 billion in bailout funds.

Among the directions set by the House bill, the Obama administration would be required to allocate at least $40 billion within seven days to stem foreclosures.

Also, recipients of bailout funds would report quarterly on how they are spending the money, and restrictions would be placed on using funds for bank takeovers.

Democratic leaders conceded the Senate is unlikely to follow suit after Obama administration officials already announced how they are planning to spend at least part of the account.

Critics questioned whether additional TARP money should be spent at all.

The bill passed 260-166. Berkley and Titus voted for the bill. Heller voted against it.

Contact Stephens Media Bureau Chief Steve Tetreault at stetreault@stephens media.com or 202-783-1760.