Should Congress combat wage discrimination based on sex, sexual orientation, and gender identity?

This bill has Passed the House of Representatives
Bill Summary

The Paycheck Fairness Act seeks to address wage-based discrimination on the basis of sex, sexual orientation, gender identity, and sexual characteristics. The legislation establishes that, in discrimination lawsuits, employers can only argue that a pay differential is justified if it is based on job-related factors. The bill also increases nonretaliation provisions, blocks employers from forcing employees to sign contracts that prohibit the employee from sharing information about their compensation, and increases penalties if a company is found guilty of employment discrimination. In addition, the bill requires the Equal Employment Opportunity Commission and the Office of Federal Contract Compliance Programs (both mediate employment discrimination claims) to train employees in sexual and gender identity wage-based discrimination. Finally, the Paycheck Fairness Act requires the Department of Labor to carry out a grant program to provide workplace negotiation courses to women, study pay disparities between men and women, and make any information on wage discrimination it has available. Sponsor: Rep. Rosa DeLauro (Democrat, Connecticut District 3)
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Opponents say

• "(The Society for Human Resource Management) strongly opposes the Paycheck Fairness Act as currently written because the bill would: 1) make employers liable for unlimited punitive damages under the FLSA for even unintentional pay disparities. 2) Facilitate class action lawsuits against employers by repealing the requirement that employees must give their written consent to become a party in an Equal Pay Act class action. The Paycheck Fairness Act would automatically include all relevant employees in a class, a provision that would inevitably and dramatically increase the number of plaintiffs in class actions. 3) Restrict an employer’s flexibility to compensate its employees based on current law criteria, such as cost-of-living differences among geographic locations, different work responsibilities within similar job categories or prior salary history." Source: The Society for Human Recourse Managment
• "The (Paycheck Fairness Act) misses the mark with the following provisions: 1) requir[ing] the EEOC, for the first time, to collect compensation data from employers disaggregated by the sex, race, and national origin of employees, including hiring, termination, and promotion data. This would be an action that could impose compliance costs of $700 million annually. 2) Expand[ing] class action lawsuits by deeming all potential class members to be plaintiffs, requiring those who may not wish to pursue a claim to affirmatively opt-out. 3) Open[ing] claims unlimited compensatory or punitive damages, even if there is no finding of intentional discrimination. 4) Establish[ing] a higher burden on employers to prove that “a factor other than sex” is a “bona fide factor other than sex” which would only apply if the employer can show a “business necessity” for the disparity." Source: Rep. Elise Stefanik> (Republican, New York, District 21)

Proponents say

• "The Concept is simple: men and women deserve the same pay. Job loss resulting from the coronavirus pandemic has disproportionately impacted women, with women accounting for 100% of jobs lost in December. We must enact the Paycheck Fairness Act to both close the worsening pay gap and protect and empower women as they reenter the job force. This legislation is long overdue, but this is the Congress that it will finally be signed into law." Source: Rep. Rosa Delauro (Democrat, Connecticut, District 3)
• "Women’s median earnings are lower than men’s in nearly all occupations, whether they work in occupations predominantly done by women, occupations predominantly done by men, or occupations with a more even mix of men and women. Data for both women’s and men’s median weekly earnings for full-time work are available (through the Bureau of Labor Statistics) for 125 occupations. The occupation with the largest gender wage gap is ‘financial managers’; women’s 2019 median weekly earnings for full-time work in this occupation were just 63.6 percent of those of men’s, a gender wage gap of 36.4 percent. The median weekly gender earnings ratio for all full-time weekly workers was 81.5 percent, a weekly gender wage gap of 18.5 percent" Source: The Institute for Women’s Policy Research (Democrat, Connecticut, District 5)