PRINTER'S NO. 767 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.630 Session of 2025 INTRODUCED BY SHUSTERMAN, O'MARA, GREEN, HILL-EVANS, VENKAT, HOHENSTEIN, SCHLOSSBERG, KINKEAD, PIELLI, HADDOCK, FREEMAN, PROBST, SANCHEZ, MALAGARI, HOWARD, CIRESI, STEELE, DEASY, FIEDLER, CERRATO, CEPEDA-FREYTIZ, MAYES, BOYD, YOUNG, BOROWSKI, WAXMAN, MADDEN, ISAACSON, KENYATTA, SAPPEY, POWELL AND HANBIDGE, MARCH 3, 2025 REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 3, 2025 AN ACT Amending the act of December 17, 1959 (P.L.1913, No.694), entitled "An act prohibiting discrimination in rate of pay because of sex; conferring powers and imposing duties on the Department of Labor and Industry; and prescribing penalties," further providing for definitions and for wage rates; providing for additional violations; further providing for powers of secretary, for collection of unpaid wages , for records and reporting and for penalties; and establishing the Equal Pay Enforcement Fund . The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 2(a) of the act of December 17, 1959 (P.L.1913, No.694), known as the Equal Pay Law, is amended and the section is amended by adding definitions to read: Section 2. Definitions.--(a) The term "employe," as used in this act, shall mean any person employed for hire in any lawful business, industry, trade or profession, or in any other lawful enterprise in which individuals are gainfully employed; including individuals employed by the Commonwealth or any of its 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 political subdivisions, including public bodies[ : Provided, however, That the term "employe" as used in this act shall not apply to any person or persons who is or are subject to section 6 of the Federal Fair Labor Standards Act (Act of June 25, 1938, as amended)]. * * * (e.1) "Comparable work" means labor that is substantially similar, including substantially similar skill levels, effort and responsibility. The term includes work that is performed under similar working conditions. (e.2) "Working conditions" means the physical surroundings and hazards encountered by employes performing a job, including toxic chemicals or fumes, extreme temperatures and lack of ventilation. (e.3) "Wages" means the earnings of an employe, regardless of whether determined on time, task, piece, commission or other method of calculation, including salaries based on an annual or other basis. The term "wages" also includes fringe benefits, wage supplements or other compensation, whether payable by the employer from funds of the employer or from amounts withheld from the employe's pay by the employer. * * * Section 2. Section 3 of the act is amended to read: Section 3. Wage Rates.--(a) No employer having employes subject to any provisions of this section shall discriminate[ , within any establishment in which such employes are employed, between employes] on the basis of sex , race or ethnicity by paying different wages to employes [ in such establishment at a rate less than the rate at which he pays wages to employes of the opposite sex in such establishment for equal work on jobs, 20250HB0630PN0767 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 the performance of which, requires equal skill, effort, and responsibility, and which are ] for comparable work performed under similar working conditions, except where such payment is made pursuant to [(1) a seniority system; (2) a merit system; (3) a system which measures earnings by quantity or quality of production; or (4) a differential based on any other factor other than sex: Provided, That any employer who is paying a wage rate differential in violation of this subsection shall not in order to comply with the provisions of this subsection, reduce the wage rate of any employe. ]: (1) a bona fide seniority system that shall not reduce seniority for time spent on leave due to a pregnancy-related condition or protected parental, family or medical leave ; (2) a bona fide merit system , which must be communicated in writing to all employes subject to the merit system, include predetermined, objective evaluation criteria and include regular evaluation intervals; (3) a bona fide system which measures earnings by quantity or quality of production; or (4) a bona fide factor other than sex, race or ethnicity, such as education, training or experience, to the extent that the factor is reasonably related to the job and consistent with business necessity. (a.1) An employer who is paying a wage rate differential in violation of this section shall not, in order to comply with the provisions of this section, reduce the wage rate of an employe. (a.2) A job title or job description alone shall not determine if two jobs are comparable. (b) No labor organization, or its agents, representing employes of an employer having employes subject to any 20250HB0630PN0767 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 provisions of this section, shall cause or attempt to cause such an employer to discriminate against an employe in violation of subsection (a) of this section. (c) For purposes of this section, the term "business necessity" means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose that the factor is supposed to serve. A factor will not be considered consistent with business necessity if an employe demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential. Section 3. The act is amended by adding a section to read: Section 3.1. Additional Violations.--(a) An employer may not: (1) Require, as a condition of employment, that an employe refrain from inquiring about, discussing or disclosing information about the employe's own wages, including benefits or other compensation, or about any other employe's wages. (2) Rely on the wage history of a prospective employe from any current or former employer of the individual in determining whether to offer employment or the amount of wages to offer to the individual, except that an employer may rely on prior wage history if it is provided voluntarily and without prompting by a prospective employe to support a wage higher than the wage offered by the employer. (3) Request or require as a condition of being interviewed, or as a condition of continuing to be considered for an offer of employment or as a condition of employment, that a prospective employe disclose wages from a current or former employer. 20250HB0630PN0767 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (4) Seek from a current or former employer the previous wages of a prospective employe, except that an employer may seek to confirm prior wage information after an offer of employment with compensation has been made to the prospective employe and the prospective employe responds to the offer by providing prior wage information to support a wage higher than offered by the employer. Under these circumstances, the employer may only seek to confirm prior wages after obtaining written authorization by the prospective employe to do so. (b) An employer may not retaliate, including by discharging, demoting, transferring, reducing pay or hours or reprimanding an employe for any of the following: (1) Complaining about, opposing, instituting a proceeding based on, or attempting or planning to complain about or oppose or institute a proceeding based on, a violation of this act. (2) Testifying or planning to testify against an employer in an action under this act. (3) Assisting an investigation or otherwise participating in an action under this act. (4) Disclosing, inquiring about or discussing wages, benefits or other compensation of the employe or another employe. (c) An employer may not contract with an employe to avoid complying with this act. (d) An employer shall include the expected compensation or the range of expected compensation: (1) for any position the employer publicly advertises as a job opening; and (2) to a prospective employe applying for employment upon 20250HB0630PN0767 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 reasonable request. Section 4. Sections 4, 5, 6 and 8 of the act are amended to read: Section 4. Powers of Secretary.--(a) The secretary shall have the power, and it shall be [ his] the duty of the secretary, to carry out and administer the provisions of this act. (b) For this purpose, the secretary or [ his] an authorized representative of the secretary shall have the power to enter the establishment of any employer to inspect and copy payrolls and other employment records, to compare character of work and operations on which persons employed by [ him] the employer are engaged, to question such persons and to obtain such other information as is reasonably necessary to the administration and enforcement of this act. (c) The secretary shall have the power to issue such rules and regulations consistent with the purpose and provisions of this act as [he] the secretary deems necessary to make effective the provisions of this act. (d) The secretary shall have the power to subpoena witnesses, administer oaths, examine witnesses and take testimony or compel the production of documents for the purpose of enforcing this act. The secretary may petition the Commonwealth Court to enforce any order or subpoena issued under this act. (e) The secretary shall have the power to impose administrative fines under section 8. Section 5. [Collection of Unpaid Wages ] Relief.--(a) An employer who [wilfully and knowingly ] violates the provisions of section 3 or 3.1 of this act shall be liable to the employe or employes affected in the amount of [ their] the employe's unpaid 20250HB0630PN0767 - 6 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 wages and in addition, an equal amount as liquidated damages , punitive damages if the violation is found to be intentional or committed with reckless indifference to the employe's or prospective employe's rights under this act and any other legal and equitable relief as may be appropriate, including employment reinstatement and promotion . Action to recover such wages [ and], damages and legal or equitable relief may be maintained in any court of competent jurisdiction by any one or more employes for and in behalf of [himself or themselves ] the employe or employes and other employes similarly situated. Any agreement between the employer and an employe to work for less than the wage to which such employe is entitled under this act shall be no defense to such action. The court in such action shall, in addition to any wages [and], damages and other relief, allow a reasonable attorney's fee and costs of the action to the plaintiff. At the request of any employe paid less than the wage to which [ he] the employe is entitled under this act, the Secretary of Labor and Industry may take an assignment of such wage claim for collection and shall bring any legal action necessary to collect such claim. The secretary shall not be required to pay the filing fee or other costs in connection with such action. The secretary shall have power to join various claimants against the employer in one cause of action. (b) [Any action pursuant to the provisions of this act must be brought within two years from the date upon which the violation complained of occurs. ] An action under this act shall be commenced within three years of the date the employe knew or reasonably should have known of the alleged violation. A violation shall be deemed to have occurred when any of the following occurs: 20250HB0630PN0767 - 7 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (1) A discriminatory compensation decision or other practice is adopted. (2) An employe becomes subject to a discriminatory compensation decision or other practice. (3) An employe is affected by an application of a discriminatory compensation decision or practice, including each time wages, benefits or other compensations are paid, resulting in whole or in part from a discriminatory decision or practice. Section 6. Records and Reporting.--Every employer subject to this act shall make, keep and maintain such records of the wages and wage rates, job classifications and other terms and conditions of employment of the persons employed by [ him] the employer, and shall preserve such records for such period and shall make such reports therefrom, as the secretary shall prescribe. Section 8. Penalties.--(a) Any employer who wilfully and knowingly violates any provisions of this act, or who retaliates, discharges or in any other manner discriminates against any employe because such employe has made any complaint to [his] an employer, the secretary or any other person who instituted or caused to be instituted any proceeding under or related to this act, or has testified or is about to testify in any such proceedings, shall, upon conviction thereof in a summary proceeding, be sentenced to pay a fine of not less than [fifty dollars ($50) nor more than two hundred dollars ($200) ] two thousand five hundred dollars ($2,500) nor more than five thousand dollars ($5,000) , and, upon default in such fine and costs, shall undergo imprisonment for not less than thirty days nor more than sixty days. [ Each] Discrimination against each 20250HB0630PN0767 - 8 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 individual employe and each day such a violation continues shall constitute a separate offense. (b) Any employer who fails to keep the records required under this act or to furnish such records to the secretary upon request, or who falsifies such records or who hinders, delays or otherwise interferes with the secretary or [ his] the secretary's authorized representatives in the performance of [ his] the secretary's duties in the enforcement of this act, or refuses such official entry into any establishment which [ he] the secretary is authorized by this act to inspect, shall, upon conviction thereof in a summary proceeding, be sentenced to pay a fine of not less than [ fifty dollars ($50) nor more than two hundred dollars ($200) ] two thousand five hundred dollars ($2,500) nor more than five thousand dollars ($5,000) , and, upon default in such fine and costs, shall undergo imprisonment for not less than thirty days nor more than sixty days. Each day such a violation continues shall constitute a separate offense. (c) The secretary may impose an administrative penalty of not less than two thousand five hundred dollars ($2,500) nor more than five thousand dollars ($5,000) for each violation of this act. This subsection shall be subject to 2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of Commonwealth agencies) and 7 Subch. A (relating to judicial review of Commonwealth agency action). (d) The secretary may order an employer to take a corrective action which the secretary deems necessary to address a violation of this act. Section 5. The act is amended by adding a section to read: Section 8.1. Equal Pay Enforcement Fund.-- The Equal Pay Enforcement Fund is established as a separate fund in the State 20250HB0630PN0767 - 9 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Treasury. The following shall apply: (1) All fines imposed and collected under section 8 shall be deposited into the Equal Pay Enforcement Fund. (2) The money in the Equal Pay Enforcement Fund is appropriated on a continuing basis to the Department of Labor and Industry to be used for enforcement of this act. Section 6. This act shall take effect in one year. 20250HB0630PN0767 - 10 - 1 2 3 4 5 6 7