How does the Lilly Ledbetter Fair Pay Act relate to pay discrimination?

The Lilly Ledbetter Fair Pay Act is significant because it allows individuals to challenge pay discrimination based on any paycheck they receive. This act was enacted to address a specific issue identified in the case of Lilly Ledbetter, where she was unaware of her discriminatory pay until years after it began. Prior to this law, the statute of limitations for filing a pay discrimination claim began from the date of the original discriminatory decision, which often left victims with little recourse. However, the Fair Pay Act resets the timeline for filing a claim with each discriminatory paycheck received, thereby extending the opportunity for employees to seek justice and compensation for ongoing discrimination. This means that if an employee continues to receive a lower salary due to discrimination, they can file a claim based on each paycheck, creating a more equitable environment for addressing wage inequities.

The other choices don't accurately represent the essence of the Act; for instance, the Act does not impose restrictions on the timeframe for filing claims, mandate annual pay audits, or set standard compensation benchmarks. Instead, it focuses specifically on empowering employees to respond to ongoing pay inequities that may not have been immediately apparent.