Paycheck Fairness Act
Bill Number: HR-7
The bill still needs to pass the Senate and be signed by the president to become law.
An act to amend the Fair Labor Standards Act of 1938 to provide more effective remedies to victims of discrimination in the payment of wages on the basis of sex, and for other purposes.
What this bill would do
This bill would change the current law - the 1963 Equal Pay Act - to strengthen its restrictions against gender discrimination in salaries.
What's wrong with the current law?
The current law allows for wage differences that are based on any other factor other than sex. That has left a wide range of exemptions.
Salaries for new hires often are based on their previous salaries. Since salaries for females typically have been lower right from the start of their careers, a female starting at new job has an inherent salary disadvantage against a male.
Females also tend to receive harsher treatment when negotiating the salary for a new job.
This bill would address those issues
This bill would close some of those gaps. Under this law, companies no longer would be allowed to...
It would change the exemption criteria from any other factor other than sex to a bona fide factor other than sex, such as education, training, or experience.
Employers would need to demonstrate that these factors - rather than gender - account for the entire wage difference.
It would allow for gender discrimination claims in court to be treated the same as those for race and ethnicity claims.
It also would require companies to report wage data to the Equal Employment Opportunity Commission (EEOC).
For more information