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Noel v. Boeing (3d Cir. 2010)

Articles Discussing Case:

Federal Appeals Court Rules that Ledbetter Fair Pay Act Does Not Apply to Promotion Claims.

Franczek Radelet P.C • October 18, 2010
In a ruling that should provide relief to employers worried about the threat of litigation concerning decisions made years ago, a second federal court of appeals held that the Lilly Ledbetter Fair Pay Act (“the Act”) does not apply to discrimination claims arising from denial of a promotion. In Noel v. Boeing, the Third Circuit Court of Appeals, the federal appellate court for Delaware, New Jersey and Pennsylvania, joined a ruling by the D.C. Circuit earlier this year, and held that a Title VII claim is untimely if it concerns a promotion decision made more than 300 days before the plaintiff files a charge with the EEOC or other employment agency, even if the decision resulted in the plaintiff receiving lower pay within the most recent 300 days.

Third Circuit holds that Ledbetter Fair Pay Act does not apply to failure-to-promote claims under Title VII.

Ogletree Deakins • October 18, 2010
In 2009, Congress passed the Lilly Ledbetter Fair Pay Act (FPA), which allows employees to file unequal-pay claims outside of the otherwise applicable 300 day statute of limitations period for filing claims of discrimination. Under the FPA, the statute of limitations re-starts each time compensation is paid pursuant to a “discriminatory compensation decision or other practice,” typically when a periodic paycheck is issued. In an issue of first impression, the 3d U.S. Circuit Court of Appeals recently upheld summary judgment for an employer, and specifically held that a black Haitian mechanic could not use the FPA to support his failure-to-promote claim under Title VII. Noel v. Boeing Co., 3d Cir., No.08-3877, October 1, 2010. In that case, an employee unsuccessfully argued that the 300-day statute of limitations began each time he received a lower paycheck than he would have received had he been promoted three years prior to his claim of discrimination.