Explanation of the Paycheck Fairness Act

Explanation of the Paycheck Fairness Act

The Paycheck Fairness Act, also known as H.R. 1869, is a bill introduced in the United States House of Representatives to amend the Fair Labor Standards Act of 1938. The main purpose of this bill is to provide more effective remedies to victims of discrimination in the payment of wages based on sex. The bill aims to address the ongoing issue of pay disparities between men and women in the workforce.

The bill highlights the following findings:

Women continue to earn significantly lower pay than men for equal work despite laws like the Equal Pay Act of 1963.
These pay disparities negatively impact working families, women's retirement security, labor resources utilization, and commerce.
Artificial barriers to eliminating wage discrimination based on sex still exist.

The bill proposes several provisions, including:

Enhanced enforcement of equal pay requirements, including modifications to the bona fide factor defense.
A prohibition on inquiring about or using a prospective employee's wage history in determining future wages.
Establishment of the National Award for Pay Equity in the Workplace to recognize employers making efforts to eliminate pay disparities.
Collection of compensation data by the Equal Employment Opportunity Commission to better enforce equal pay laws.

Additionally, the bill includes sections for training programs on negotiation skills for girls and women, research on pay disparities, and technical assistance for small businesses to comply with the new requirements.

It's important to note that the bill does not affect compliance with immigration laws and emphasizes the need to address wage discrimination based on sex.

Rep. Jim Costa

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