What does Preamble of Paycheck Fairness Act do?

This bill proposes to amend the Fair Labor Standards Act of 1938. The stated purpose is to provide more effective remedies to victims of discrimination in the payment of wages based on sex. The bill was introduced in the House of Representatives on March 25, 2025.

What does SHORT TITLE. of Paycheck Fairness Act do?

This Act is formally titled the Paycheck Fairness Act.

What does ENHANCED ENFORCEMENT OF EQUAL PAY REQUIREMENTS. of Paycheck Fairness Act do?

This section amends the Fair Labor Standards Act of 1938 to expand the definition of 'sex' to include pregnancy, childbirth, related medical conditions, sexual orientation, gender identity, and sex characteristics. The bona fide factor defense for pay differentials is modified, requiring employers to demonstrate that a factor other than sex is job-related, consistent with business necessity, and accounts for the entire differential, and that an alternative practice exists that would serve the same purpose without the differential. The nonretaliation provision is expanded to protect employees who inquire about or disclose wages, and to prohibit employers from requiring employees to sign contracts or waivers prohibiting wage disclosure. Enhanced penalties, including compensatory and punitive damages, are established for violations of equal pay provisions. The Secretary of Labor, through the Office of Federal Contract Compliance Programs, is authorized to enforce equal pay provisions with respect to federal contractors and subcontractors. The Equal Employment Opportunity Commission is tasked with enforcing and administering the provisions of section 6(d) of the Fair Labor Standards Act of 1938.

What does TRAINING. of Paycheck Fairness Act do?

This section establishes training requirements related to wage discrimination. The Equal Employment Opportunity Commission and the Secretary of Labor, through the Office of Federal Contract Compliance Programs, will provide the training. Training will be provided to employees of the Commission and the Office of Federal Contract Compliance Programs. Training will also be provided to affected individuals and entities. The provision of training is contingent upon the availability of funds appropriated under section 11.

What does NEGOTIATION SKILLS TRAINING. of Paycheck Fairness Act do?

This section establishes a program to award contracts and grants for training employers about salary negotiation and inconsistent wage setting practices. The training programs must include an overview of how structural issues can lead to inequitable earning and advancement opportunities for women and people of color. The Secretary of Labor is authorized to establish a grant program to address pay disparities, consulting with the Secretary of Education. Eligible entities to receive grants include public agencies, private nonprofit organizations, and community-based organizations. The Secretaries of Labor and Education are directed to integrate negotiation skills training into existing programs, such as the Elementary and Secondary Education Act and the Workforce Innovation and Opportunity Act. The Secretary of Labor must submit a report to Congress within 18 months of enactment and annually thereafter, evaluating the effectiveness of the program.

What does RESEARCH, EDUCATION, AND OUTREACH. of Paycheck Fairness Act do?

This section directs the Secretary of Labor to conduct studies and provide information to employers, labor organizations, and the public regarding eliminating pay disparities between men and women, including women from various racial and ethnic groups. The Secretary must conduct and promote research to correct conditions leading to pay disparities, with specific attention to historically underrepresented and minority groups. The Secretary is required to publish findings from studies and make them available to various entities, including employers, labor organizations, and the media. The Secretary shall sponsor and assist informational and educational programs at the state, local, and community levels. The Secretary will recognize and promote the achievements of organizations working to eliminate pay disparities. The Secretary of Labor, through the Director of the Women’s Bureau, must conduct a review and synthesis of research on the gender wage gap among younger workers. The Secretary is authorized to commission studies to advance knowledge on the gender wage gap among younger workers.

What does ESTABLISHMENT OF THE NATIONAL AWARD FOR PAY EQUITY IN THE of Paycheck Fairness Act do?

This section establishes the National Award for Pay Equity in the Workplace. The Secretary of Labor, in consultation with the Equal Employment Opportunity Commission, will award the prize annually. The award aims to encourage employers to proactively comply with section 6(d) of the Fair Labor Standards Act of 1938. Criteria for qualification will require employers to demonstrate substantial effort in eliminating pay disparities between men and women. The Secretary of Labor will also establish procedures for applications and award presentation. The term 'employer' includes corporations, partnerships, professional associations, labor organizations, and similar business entities. Entities conducting education, training, or joint programs are also considered employers for the purposes of this section.

What does COLLECTION OF PAY INFORMATION BY THE EQUAL EMPLOYMENT of Paycheck Fairness Act do?

This section amends Section 709 of the Civil Rights Act of 1964 to require the Equal Employment Opportunity Commission (EEOC) to collect annual compensation data from employers. The data must be disaggregated by sex, race, and national origin, and the EEOC may also require data on hiring, termination, and promotion. The EEOC must prioritize effective and efficient means for enhancing enforcement of pay discrimination laws. The EEOC may use compensation ranges to collect data, adjusting them as needed to enhance enforcement or for inflation. Employers may report 40 hours per week for full-time and 20 hours per week for part-time employees who are not eligible for overtime compensation under the Fair Labor Standards Act. Data categories will include race, national origin, sex, and job categories similar to those used in the EEO-1 report. The EEOC will use the collected data to enhance investigations of pay discrimination charges and allocate resources. Aggregate compensation data will be made publicly available every 18 months, disaggregated by industry, occupation, and statistical area. The data collection requirement applies to private employers with 100 or more employees, including federal contractors and subcontractors, or employers the Commission deems appropriate.

What does REINSTATEMENT OF PAY EQUITY PROGRAMS AND PAY EQUITY DATA of Paycheck Fairness Act do?

The Commissioner of Labor Statistics is directed to continue collecting data on women workers within the Current Employment Statistics survey. The Director of the Office of Federal Contract Compliance Programs will collect compensation and employment-related data (hiring, termination, promotion) by demographics from contractors. At least half of all nonconstruction contractors must prepare and file this data annually. The Office of Federal Contract Compliance Programs will review and utilize the data for contractor evaluation and enforcement. The Secretary of Labor is required to distribute information on compensation discrimination, including statistics and compliance instructions, to the public.

What does PROHIBITIONS RELATING TO PROSPECTIVE EMPLOYEES' SALARY AND of Paycheck Fairness Act do?

This section amends the Fair Labor Standards Act of 1938 to establish requirements and prohibitions related to wage, salary, and benefit history. Employers are prohibited from relying on a prospective employee's wage history when considering them for employment or determining their wages, with limited exceptions. An exception allows employers to rely on voluntarily provided wage history after making an offer of employment with compensation, if the employee seeks a higher wage. Employers may only seek wage history information after making a job offer with compensation and only if the prospective employee provides it to support a higher wage. Retaliation against employees or prospective employees for opposing unlawful practices or taking actions against discrimination is prohibited. The term 'wage history' is defined as wages paid by a current or previous employer. Violations of the new section 8 can result in civil penalties of up to $10,000, with $5,000 for a first offense and increasing by $1,000 for each subsequent offense. Employees or prospective employees subjected to violations may recover special damages (up to $10,000) plus attorneys' fees. Section 10 of the Fair Labor Standards Act of 1938 is repealed.

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Paycheck Fairness Act

Last updated: 3/25/2025 · Introduced: 3/25/2025

Author: Rosa DeLauro (D-CT)

TL;DR (AI)

The bill expands the definition of 'sex' to include pregnancy, childbirth, related medical conditions, sexual orientation, gender identity, and sex characteristics, impacting equal pay protections.
Employers face stricter requirements to justify pay differentials, needing to demonstrate that any differences are job-related, consistent with business necessity, and account for the entire difference, with an alternative practice available.
The bill prohibits employers from preventing employees from discussing wages and restricts their ability to ask about salary history during the hiring process.
It establishes a grant program to fund training for employers on salary negotiation practices and equitable earning opportunities, particularly for women and people of color.
The Equal Employment Opportunity Commission will collect annual compensation data, disaggregated by sex, race, and national origin, to identify and address pay discrimination.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 14 more.

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