Compliance
Paycheck Rule
The legal principle that each discriminatory paycheck constitutes a new act of discrimination, resetting the statute of limitations.
Definition
The 'paycheck rule' is the central tenet of the Lilly Ledbetter Fair Pay Act. It establishes that for purposes of the statute of limitations, an unlawful employment practice with respect to compensation discrimination occurs each time wages, benefits, or other compensation is paid, resulting in whole or in part from a discriminatory compensation decision or practice. This means that the 180-day or 300-day period for filing a charge of discrimination resets with each new discriminatory paycheck received by an employee.