The Paycheck Fairness Act
On July 31, 2008, the House passed the Paycheck Fairness Act, H.R. 1338.
Although the wage gap between men and women has narrowed since the passage of the landmark Equal Pay Act in 1963, gender-based wage discrimination remains a problem for women in the U.S. workforce. According to the U.S. Census Bureau, women only make 77 cents for every dollar earned by a man. The Institute of Women’s Policy Research found that this wage disparity will cost women anywhere from $400,000 to $2 million over a lifetime in lost wages.
Furthermore, loopholes created by courts and weak sanctions in the law have allowed many employers to avoid liability for engaging in gender-based pay discrimination.
The Paycheck Fairness Act, introduced by U.S. Rep. Rosa DeLauro (D-CT), will strengthen the Equal Pay Act and close the loopholes that have allowed employers to avoid responsibility for discriminatory pay.
The Paycheck Fairness Act:
- Requires that employers seeking to justify unequal pay bear the burden of proving that its actions are job-related and consistent with a business necessity.
- Prohibits employers from retaliating against employees who share salary information with their co-workers.
- Puts gender-based discrimination sanctions on equal footing with other forms of wage discrimination – such as discrimination based on race, disability or age – by allowing women to sue for compensatory and punitive damages.
- Requires the Department of Labor to enhance outreach and training efforts to work with employers in order to eliminate pay disparities.
- Requires the Department of Labor to continue to collect and disseminate wage information based on gender.
- Creates a new grant program to help strengthen the negotiation skills of girls and women.