Fair Pay Act of 2026

Wage Equity: The bill prohibits paying employees different wages based on sex, race, or national origin for equivalent jobs, which could help close existing wage gaps (Section 3(a)(1)(A)).

Financial Security for Families: By addressing wage rate differentials, the bill aims to reduce poverty and improve living standards for employees and their families (Section 2(5)(A) and 2(5)(F)).

Reduced Poverty Rates: The bill's findings suggest that implementing these changes could cut the poverty rate for working women in half and significantly reduce the poverty rate for working single mothers (Section 2(6)(C)).

Increased Economic Income: The bill notes that providing equal pay could lead to additional income within the U.S. economy (Section 2(6)(A)).

Legal Protections for Workers: The bill adds protections that prevent employers from discriminating against workers who discuss their wages or participate in investigations regarding pay discrimination (Section 4(7) and 4(8)).

Enhanced Legal Remedies: Workers facing violations may be entitled to additional compensation through compensatory or punitive damages, as well as expert fees in class action lawsuits (Section 5(a) and 5(c)).

Employer Burden of Proof: To use a factor like education or experience to justify a wage difference, an employer must demonstrate that the factor is job-related, furthers a legitimate business purpose, and was actually applied reasonably (Section 3(a)(1)(B)(iv)).

Reporting Requirements for Employers: Certain employers are required to prepare and submit reports to the Equal Employment Opportunity Commission disclosing wage rates and employee demographics (Section 6(b)).

Record-Keeping Mandates: Employers subject to the act must preserve detailed records regarding the methods and calculations used to establish wage rates (Section 6(a)).