S 74 IS1S
(Star Print)
106th CONGRESS
1st Session
S. 74
To amend the Fair Labor Standards Act of 1938 to provide more
effective remedies to victims of discrimination in the payment of wages on the
basis of sex, and for other purposes.
IN THE SENATE OF THE UNITED STATES
January 19, 1999
Mr. DASCHLE (for himself, Mr. KERRY, Mr. LEAHY, Ms. MIKULSKI, Mrs. MURRAY,
Mr. REID, Mr. WYDEN, Mrs. BOXER, Mr. LAUTENBERG, Mr. KENNEDY, Mr. KERREY, Mr.
DURBIN, Ms. LANDRIEU, Mr. REED, Mr. ROBB, Mr. TORRICELLI, Mr. BREAUX, Mr.
WELLSTONE, Mrs. FEINSTEIN, Mr. HOLLINGS, Mr. DODD, Mr. AKAKA, Mr. FEINGOLD, and
Mr. JOHNSON) introduced the following bill; which was read twice and referred to
the Committee on Health, Education, Labor, and Pensions
A BILL
To amend the Fair Labor Standards Act of 1938 to provide more
effective remedies to victims of discrimination in the payment of wages on the
basis of sex, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Paycheck Fairness Act'.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Women have entered the workforce in record numbers.
(2) Even in the 1990's, women earn significantly lower pay than men for
work on jobs that require equal skill, effort, and responsibility and that
are performed under similar working conditions. These pay disparities exist
in both the private and governmental sectors. In many instances, the pay
disparities can only be due to continued intentional discrimination or the
lingering effects of past discrimination.
(3) The existence of such pay disparities--
(A) depresses the wages of working families who rely on the wages of
all members of the family to make ends meet;
(B) prevents the optimum utilization of available labor
resources;
(C) has been spread and perpetuated, through commerce and the channels
and instrumentalities of commerce, among the workers of the several
States;
(D) burdens commerce and the free flow of goods in commerce;
(E) constitutes an unfair method of competition in commerce;
(F) leads to labor disputes burdening and obstructing commerce and the
free flow of goods in commerce;
(G) interferes with the orderly and fair marketing of goods in
commerce; and
(H) in many instances, may deprive workers of equal protection on the
basis of sex in violation of the 5th and 14th amendments.
(4)(A) Artificial barriers to the elimination of discrimination in the
payment of wages on the basis of sex continue to exist more than 3 decades
after the enactment of the Fair Labor Standards Act of 1938 (29 U.S.C. 201
et seq.) and the Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.).
(B) Elimination of such barriers would have positive effects,
including--
(i) providing a solution to problems in the economy created by unfair
pay disparities;
(ii) substantially reducing the number of working women earning
unfairly low wages, thereby reducing the dependence on public assistance;
and
(iii) promoting stable families by enabling all family members to earn
a fair rate of pay;
(iv) remedying the effects of past discrimination on the basis of sex
and ensuring that in the future workers are afforded equal protection on
the basis of sex; and
(v) ensuring equal protection pursuant to Congress' power to enforce
the 5th and 14th amendments.
(5) With increased information about the provisions added by the Equal
Pay Act of 1963 and wage data, along with more effective remedies, women
will be better able to recognize and enforce their rights to equal pay for
work on jobs that require equal skill, effort, and responsibility and that
are performed under similar working conditions.
(6) Certain employers have already made great strides in eradicating
unfair pay disparities in the workplace and their achievements should be
recognized.
SEC. 3. ENHANCED ENFORCEMENT OF EQUAL PAY REQUIREMENTS.
(a) REQUIRED DEMONSTRATION FOR AFFIRMATIVE DEFENSE- Section 6(d)(1) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 206(d)(1)) is amended by striking
`(iv) a differential' and all that follows through the period and inserting
the following: `(iv) a differential based on a bona fide factor other than
sex, such as education, training or experience, except that this clause shall
apply only if--
`(I) the employer demonstrates that--
`(AA) is job-related with respect to the position in question;
or
`(BB) furthers a legitimate business purpose, except that this item
shall not apply where the employee demonstrates that an alternative employment
practice exists that would serve the same business purpose without producing
such differential and that the employer has refused to adopt such alternative
practice; and
`(bb) such factor was actually applied and used reasonably in
light of the asserted justification; and
`(II) upon the employer succeeding under subclause I, the employee
fails to demonstrate that the differential produced by the reliance of
the employer on such factor is itself the result of discrimination on
the basis of sex by the employer.
`An employer that is not otherwise in compliance with this paragraph may
not reduce the wages of any employee in order to achieve such
compliance.'.
(b) APPLICATION OF PROVISIONS- Section 6(d)(1) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 206(d)(1)) is amended by adding at the end the
following: `The provisions of this subsection shall apply to applicants for
employment if such applicants, upon employment by the employer, would be
subject to any provisions of this section.'.
(c) ELIMINATION OF ESTABLISHMENT REQUIREMENT- Section 6(d) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206(d)) is amended--
(1) by striking `, within any establishment in which such employees are
employed,'; and
(2) by striking `in such establishment' each place it appears.
(d) NONRETALIATION PROVISION- Section 15(a)(3) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
(1) by striking `or has' each place it appears and inserting `has';
and
(2) by inserting before the semicolon the following: `, or has inquired
about, discussed, or otherwise disclosed the wages of the employee or
another employee, or because the employee (or applicant) has made a charge,
testified, assisted, or participated in any manner in an investigation,
proceeding, hearing, or action under section 6(d)'.
(e) ENHANCED PENALTIES- Section 16(b) of the Fair Labor Standards Act of
1938 (29 U.S.C. 216(b)) is amended--
(1) by inserting after the first sentence the following: `Any employer
who violates section 6(d) shall additionally be liable for such compensatory
or punitive damages as may be appropriate, except that the United States
shall not be liable for punitive damages.';
(2) in the sentence beginning `An action to', by striking `either of the
preceding sentences' and inserting `any of the preceding sentences of this
subsection';
(3) in the sentence beginning `No employees shall', by striking `No
employees' and inserting `Except with respect to class actions brought to
enforce section 6(d), no employee';
(4) by inserting after the sentence referred to in paragraph (3), the
following: `Notwithstanding any other provision of Federal law, any action
brought to enforce section 6(d) may be maintained as a class action as
provided by the Federal Rules of Civil Procedure.'; and
(5) in the sentence beginning `The court in'--
(A) by striking `in such action' and inserting `in any action brought
to recover the liability prescribed in any of the preceding sentences of
this subsection'; and
(B) by inserting before the period the following: `, including expert
fees'.
(f) ACTION BY SECRETARY- Section 16(c) of the Fair Labor Standards Act of
1938 (29 U.S.C. 216(c)) is amended--
(1) in the first sentence--
(A) by inserting `or, in the case of a violation of section 6(d),
additional compensatory or punitive damages,' before `and the agreement';
and
(B) by inserting before the period the following: `, or such
compensatory or punitive damages, as appropriate';
(2) in the second sentence, by inserting before the period the
following: `and, in the case of a violation of section 6(d), additional
compensatory or punitive damages';
(3) in the third sentence, by striking `the first sentence' and
inserting `the first or second sentence'; and
(4) in the last sentence--
(A) by striking `commenced in the case' and inserting
`commenced--
(B) by striking the period and inserting `; or'; and
(C) by adding at the end the following:
`(2) in the case of a class action brought to enforce section 6(d), on
the date on which the individual becomes a party plaintiff to the class
action'.
SEC. 4. TRAINING.
The Equal Employment Opportunity Commission and the Office of Federal
Contract Compliance Programs, subject to the availability of funds
appropriated under section 9(b), shall provide training to Commission
employees and affected individuals and entities on matters involving
discrimination in the payment of wages.
SEC. 5. RESEARCH, EDUCATION, AND OUTREACH.
The Secretary of Labor shall conduct studies and provide information to
employers, labor organizations, and the general public concerning the means
available to eliminate pay disparities between men and women, including--
(1) conducting and promoting research to develop the means to correct
expeditiously the conditions leading to the pay disparities;
(2) publishing and otherwise making available to employers, labor
organizations, professional associations, educational institutions, the
media, and the
general public the findings resulting from studies and other materials,
relating to eliminating the pay disparities;
(3) sponsoring and assisting State and community informational and
educational programs;
(4) providing information to employers, labor organizations,
professional associations, and other interested persons on the means of
eliminating the pay disparities;
(5) recognizing and promoting the achievements of employers, labor
organizations, and professional associations that have worked to eliminate
the pay disparities; and
(6) convening a national summit to discuss, and consider approaches for
rectifying, the pay disparities.
SEC. 6. TECHNICAL ASSISTANCE AND EMPLOYER RECOGNITION PROGRAM.
(1) IN GENERAL- The Secretary of Labor shall develop guidelines to
enable employers to evaluate job categories based on objective criteria such
as
educational requirements, skill requirements, independence, working
conditions, and responsibility, including decisionmaking responsibility and de
facto supervisory responsibility.
(2) USE- The guidelines developed under paragraph (1) shall be designed
to enable employers voluntarily to compare wages paid for different jobs to
determine if the pay scales involved adequately and fairly reflect the
educational requirements, skill requirements, independence, working
conditions, and responsibility for each such job with the goal of
eliminating unfair pay disparities between occupations traditionally
dominated by men or women.
(3) PUBLICATION- The guidelines shall be developed under paragraph (1)
and published in the Federal Register not later than 180 days after the date
of enactment of this Act.
(b) EMPLOYER RECOGNITION-
(1) PURPOSE- It is the purpose of this subsection to emphasize the
importance of, encourage the improvement of, and recognize the excellence of
employer efforts to pay wages to women that reflect the real value of the
contributions of such women to the workplace.
(2) IN GENERAL- To carry out the purpose of this subsection, the
Secretary of Labor shall establish a program under which the Secretary shall
provide for the recognition of employers who, pursuant to a voluntary job
evaluation conducted by the employer, adjust their wage scales (such
adjustments shall not include the lowering of wages paid to men) using the
guidelines developed under subsection (a) to ensure that women are paid
fairly in comparison to men.
(3) TECHNICAL ASSISTANCE- The Secretary of Labor may provide technical
assistance to assist an employer in carrying out an evaluation under
paragraph (2).
(c) REGULATIONS- The Secretary of Labor shall promulgate such rules and
regulations as may be necessary to carry out this section.
SEC. 7. ESTABLISHMENT OF THE NATIONAL AWARD FOR PAY EQUITY IN THE
WORKPLACE.
(a) IN GENERAL- There is established the Robert Reich National Award for
Pay Equity in the Workplace, which shall be evidenced by a medal bearing the
inscription `Robert Reich National Award for Pay Equity in the Workplace'. The
medal shall be of such design and materials, and bear such additional
inscriptions, as the Secretary of Labor may prescribe.
(b) CRITERIA FOR QUALIFICATION- To qualify to receive an award under this
section a business shall--
(1) submit a written application to the Secretary of Labor, at such
time, in such manner, and containing such information as the Secretary may
require, including at a minimum information that demonstrates that the
business has made substantial effort to eliminate pay disparities between
men and women, and deserves special recognition as a consequence; and
(2) meet such additional requirements and specifications as the
Secretary of Labor determines to be appropriate.
(c) MAKING AND PRESENTATION OF AWARD-
(1) AWARD- After receiving recommendations from the Secretary of Labor,
the President or the designated representative of the President shall
annually present the award described in subsection (a) to businesses that
meet the qualifications described in subsection (b).
(2) PRESENTATION- The President or the designated representative of the
President shall present the award under this section with such ceremonies as
the President or the designated representative of the President may
determine to be appropriate.
(d) BUSINESS- In this section, the term `business' includes--
(1)(A) a corporation, including a nonprofit corporation;
(C) a professional association;
(D) a labor organization; and
(E) a business entity similar to an entity described in any of
subparagraphs (A) through (D);
(2) an entity carrying out an education referral program, a training
program, such as an apprenticeship or management training program, or a
similar program; and
(3) an entity carrying out a joint program, formed by a combination of
any entities described in paragraph (1) or (2).
SEC. 8. COLLECTION OF PAY INFORMATION BY THE EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION.
Section 709 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-8) is amended
by adding at the end the following:
`(f)(1) Not later than 18 months after the date of enactment of this
subsection, the Commission shall--
`(A) complete a survey of the data that is currently available to the
Federal Government relating to employee pay information for use in the
enforcement of Federal laws prohibiting pay discrimination and, in
consultation with other relevant Federal agencies, identify additional data
collections that will enhance the enforcement of such laws; and
`(B) based on the results of the survey and consultations under
subparagraph (A), issue regulations to provide for the collection of pay
information data from employers as described by the sex, race, and national
origin of employees.
`(2) In implementing paragraph (1), the Commission shall have as its
primary consideration the most effective and efficient means for enhancing the
enforcement of Federal laws prohibiting pay discrimination. For this purpose,
the Commission shall consider factors including the imposition of burdens on
employers, the frequency of required reports (including which employers should
be required to prepare reports), appropriate protections for maintaining data
confidentiality, and the most effective format for the data collection
reports.'.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be necessary to
carry out this Act.
END