Summary of the Paycheck Fairness Act (H.R. 7)

What is this bill about?

This bill is called the Paycheck Fairness Act. Its main goal is to strengthen laws that protect workers, especially women, from being paid unfairly based on their sex. It updates and improves the existing Equal Pay Act of 1963 to help close the wage gap between men and women.

Why is this bill important?

• Women have joined the workforce in record numbers over the last 50 years.
• Despite previous laws, many women still earn less pay than men for doing the same work.
• Pay gaps are even worse for women of color.
• Some of the wage differences are due to ongoing discrimination or the effects of past discrimination.
• Pay inequality harms families' incomes, women's retirement security, and overall economic growth.
• It also creates unfair competition among employers and causes workplace conflicts.

Key changes and actions in the bill

• Stronger legal protections: Makes it easier for workers to challenge unfair pay by clarifying when employers' justifications for pay differences are acceptable.
• Supports wage discussions: Protects employees who talk about their wages and forbids employers from stopping workers from sharing or asking about pay.
• Better penalties: Increases damages and fines against employers who break equal pay rules, including punitive damages in cases of intentional discrimination.
• No retaliation: Protects workers who file complaints or participate in investigations related to pay discrimination.
• Limits wage history use: Bans employers from relying on a job applicant's past salary to decide pay, unless the applicant volunteers that information after a job offer is made.
• Grants for negotiation skills: Provides funding for programs to help women and girls learn how to negotiate better pay.
• Training and education: Directs government agencies to provide training about pay discrimination rights and how to prevent it.
• Research and reports: Requires studies about wage gaps including for teenagers, and public sharing of data to help everyone understand and close pay disparities.
• Data collection: Requires employers with 100 or more employees to report their pay data by sex, race, ethnicity, and job type to help enforce pay equity laws.
• Recognizing good employers: Creates an award for employers who actively work to eliminate pay disparities.
• Support for small businesses: Provides assistance and exempts some small businesses from new rules to reduce burden.

When does this take effect?

The law and all its changes will go into effect six months after it is signed.

In simple terms

This bill updates the law to make sure women get equal pay for equal work. It strengthens protections so workers can speak openly about pay without fear, takes steps to stop employers from using past salary as a reason to pay someone less, and provides tools and education to help eliminate pay gaps. It also improves how the government collects and uses data to find and fix unfair pay practices.

Overall, the Paycheck Fairness Act aims to make workplaces fairer, improve economic security for women and families, and close the persistent gender pay gap.