Final answer:
The term for the difference in earnings due to discrimination is called 'back pay.' It is awarded in employment discrimination cases to compensate for lost wages. The Lilly Ledbetter Fair Pay Act aids victims in claiming compensation by resetting the statute of limitations with each discriminatory paycheck.
Step-by-step explanation:
The difference between the amount of money a plaintiff earned since a discriminatory act and the amount of money she would have been earned had the discriminatory act never occurred is called back pay. This is a type of compensation that courts may award in employment discrimination cases. It is intended to make the victim of discrimination whole by covering earnings lost due to the discriminatory actions of the employer. When bringing forth a lawsuit on grounds of racial or gender discrimination, for example, the plaintiff must demonstrate that they have been paid less than another employee of a different race or gender who has similar job duties, educational background, and expertise.
The Lilly Ledbetter Fair Pay Act of 2009 addressed some complexities in discrimination cases, specifically the time frame for which individuals can file a claim. The act allows the statute of limitations to reset with each discriminatory paycheck, therefore making it easier for individuals to claim back pay for discrimination that may have occurred over a prolonged period without their knowledge.