Paycheck Fairness Act

Enhanced Legal Protections for Pay Disparities: The bill modifies the "bona fide factor" defense to require that any pay difference be job-related, consistent with business necessity, and account for the entire differential (Section 3(a)).

Increased Protections Against Retaliation: Employees are protected from retaliation for inquiring about, discussing, or disclosing their own wages or the wages of others (Section 3(b)).

Stronger Financial Remedies: Employers who violate equal pay requirements may be liable for compensatory damages, and if they act with malice or reckless indifference, punitive damages (Section 3(c)).

Fairer Hiring Practices: Employers are prohibited from relying on an applicant's wage history to determine pay, which aims to prevent past disparities from following workers to new jobs (Section 10(a)).

Economic Support for Families: By addressing pay disparities, the bill aims to reduce the number of women earning unfairly low wages, which can help reduce dependence on public assistance and promote stable families (Section 2(5)(C)).

Workplace Skill Development: The bill authorizes grants for negotiation skills training programs to help address pay disparities (Section 5(a)).

Increased Burden on Employers: The bill requires employers to demonstrate that pay differentials are job-related and consistent with business necessity, and that they account for the entire differential (Section 3(a)).

Increased Reporting Requirements: The Equal Employment Opportunity Commission will collect compensation data from employers with 100 or more employees, including data on race, sex, and ethnic identity (Section 8).

Potential for Increased Litigation: The bill expands the ability to bring class action lawsuits to enforce equal pay requirements (Section 3(c)) and wage history protections (Section 10(b)).