A more thorough explanation:

Lilly Ledbetter is a woman who worked for Goodyear at its Gadsden, Alabama, plant from 1979 until 1998. She sued her employer under Title VII, alleging pay discrimination on the basis of her gender. She claimed that she consistently received poor reviews from her supervisors, and as a result, she was denied salary raises.

However, the Supreme Court held that anyone bringing a Title VII action must have first filed a complaint with the Equal Employment Opportunity Commission (EEOC) within 180 days (300 days in some jurisdictions) following the alleged discriminatory decision, and that each paycheck issued as a result of those decisions did not extend or restart the limitation period. The Court explained that because Ledbetter had not brought a complaint within the 180-period following the relevant pay decisions, the lawsuit was untimely.

Congress overruled this decision with the Lilly Ledbetter Fair Pay Act of 2009. This legislation loosened the stringent standard set in the Ledbetter case by stating that each paycheck resulting from a discriminatory decision "restarts the clock" for the statute of limitations purposes. In other words, the statute of limitations for a discriminatory compensation case begins to run on the last day an employee receives compensation associated with any discriminatory decision or practice.

For example, if an employee is paid less than their male colleague for the same job, and this pay discrimination continues for several years, the statute of limitations for filing a complaint would not start until the last day the employee receives discriminatory pay. This act was passed out of recognition that employees often do not realize that they are receiving discriminatory pay until well after the 180-day statute of limitations has passed.

It is important to note that this act only applies to claims related to discriminatory compensation and other practices affecting compensation. It does not extend the time for filing claims related to other discrete discriminatory acts, such as hiring and termination.

Overall, Lilly Ledbetter's case and the subsequent legislation named after her have helped to address pay discrimination and ensure that employees have more time to file complaints if they believe they are being paid unfairly.