It has not taken long for the new administration in Washington to start making changes in areas of the law that impact employers.  Here are a few of the most notable developments:  

Ledbetter Fair Pay Act Is Signed Into Law by President Obama  
On January 29, 2009, President Obama signed the Lilly Ledbetter Fair Pay Act of 2009 into law.  The Ledbetter Fair Pay Act is significant for employers because it extends the time in which an employee may initiate claims based on allegedly discriminatory pay practices.  Although the Act does not extend the 180-day time within which an employee must file a charge of discrimination based on a pay practice, it amends Title VII and the Age Discrimination in Employment Act (ADEA) to provide that an unlawful employment practice based on pay occurs not only when a discriminatory compensation decision is initially made or a discriminatory pay practice is first implemented, but also when an employee becomes subject to the decision or practice and upon each additional application of the decision or practice, including each time an employee receives a paycheck.  In effect, under the Act, every paycheck could start a new 180-day filing period.  

Along with other opponents of the Ledbetter Fair Pay Act, the U.S. Chamber of Commerce contends the Act will “gut” the statute of limitations, cause an explosion of litigation against employers, and make it possible for claims to be filed decades after an alleged discriminatory act occurred.   See our recent Alert for more details on the Ledbetter Fair Pay Act and the U.S. Supreme Court ruling it reversed.   

Pending Immigration Rules and Regulations Put On Hold  
With the change in presidential administrations, the White House has directed that certain pending federal regulations be put on hold until they can be reviewed by the new administration.   This directive has resulted in delays of two initiatives related to an employer’s obligation to verify the employment eligibility of new hires.  New rules for the Form I-9 and the E-Verify program have both been delayed for several months.  

As part of the new hire process, employers are required to complete an Employment Eligibility Verification for every employee, also known as a Form I-9, to verify his or her eligibility or authorization for employment under U.S. immigration laws.  The U.S. Citizenship and Immigration Services (USCIS) has developed a new Form I-9 and has proposed new regulations governing the types of acceptable identity and employment authorization documents that employees may present for completion of the new form.  One of the USCIS’s proposed regulations, for example, would prohibit employers from accepting expired documents to verify employment authorization.   

As part of the White House’s directive delaying implementation of pending federal regulations, the USCIS recently announced a 60-day delay in implementing the new Form I-9 and its proposed regulations.  The new Form I-9 is now scheduled to be implemented on April 3, 2009, and the public comment period regarding the proposed regulations for the new form is reopened until March 4, 2009.   

A rule requiring use of the “E-Verify” system by certain contractors has also been put on hold.  “E-Verify” is an online employment eligibility verification system jointly operated by the Social Security Administration (SSA) and the Department of Homeland Security (DHS).  The new administration has delayed implementation of a proposed new rule requiring certain federal contractors and subcontractors to use the E-Verify program until May 21, 2009.  The new rule was scheduled to take effect January 15, 2009, but there have been legal challenges to it, and President Obama decided to delay implementation of the new rule so it can be more thoroughly reviewed.    

We will keep you posted on other significant events that impact employers as they unfold.