On June 8, 2021, a procedural vote to consider the Paycheck Fairness Act in the U.S. Senate failed by a vote of 49-50, falling short of the 60 votes needed to advance the gender wage gap legislation. The pay equity bill was first introduced in 2009 and again in 2011; it passed the House both times but the Senate failed twice – and now, three times – to bring it to a vote.
According to the U.S. Bureau of Labor Statistics, women who work full time in the U.S. made, on average, 82 cents for every dollar their male counterparts made in 2020. The gap for women of color is even larger, with Black women typically making only 63 cents, Native American women only 60 cents, and Latinas only 55 cents for every dollar made by white, non-Hispanic males.
The Paycheck Fairness Act (PFA) would amend the Equal Pay Act to strike “any other factor other than sex” and replace it with “a bona fide factor other than sex, such as education, training, or experience.” In addition, the PFA would prohibit employers from:
- Setting compensation based on a job applicant’s salary history.
- Asking job applicants about their salary history.
- Retaliating against employees who discuss their salary with co-workers.
To increase transparency, employers would also be required to share pay data with the Equal Employment Opportunity Commission (EEOC), which would monitor potential discriminatory practices.
The bill was opposed by several business groups, including the U.S. Chamber of Commerce, which issued a letter stating that it opposed the PFA “because it would undermine efforts to combat pay discrimination by conflating discriminatory practices with other non-discriminatory factors that result in legitimate pay disparities.”
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 678-439-6236.
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