Us Congress 2023-2024 Regular Session

Us Congress House Bill HB1600

Introduced
3/14/23  

Caption

Pay Equity for All Act of 2023

Impact

If passed, HB1600 would comprehensively alter how employers handle wage histories in the hiring process. It would make it unlawful for employers to require prospective employees to disclose their wage history or to rely on this information to set salaries or conditions of employment. Employers could only consider wage history if it is voluntarily provided after a job offer, thereby enabling candidates to negotiate better pay without the shadow of prior earnings restricting their options. Furthermore, the bill introduces civil penalties for non-compliance, which may include fines and special damages for affected employees. This regulatory shift aims to dismantle the cycle of wage inequality that disproportionately affects marginalized groups.

Summary

House Bill 1600, titled the Pay Equity for All Act of 2023, seeks to amend the Fair Labor Standards Act of 1938 to prohibit employers from considering the salary and benefit history of employees or prospective employees in employment-related decisions. This bill aims to combat wage discrimination by ensuring that hiring and compensation practices are based solely on qualifications and experience, rather than on potentially lower wages secured from previous employers. By limiting the influence of past earnings on new job offers, the legislation intends to promote pay equity across genders and racial lines, fostering an environment where all individuals can negotiate compensation without past salary bias.

Contention

The bill has generated substantial dialogue regarding its implications on business hiring practices and the potential economic ramifications. While proponents argue that HB1600 is a vital measure in addressing systemic wage discrimination, critics raise concerns about its practicality and the possible burden it could impose on employers, especially smaller businesses that may rely on historical salary data to gauge job market competitiveness. Furthermore, questions regarding the enforcement of penalties set forth in the act raise discussions about the balance between protecting workers and maintaining an adaptable labor market.

Companion Bills

US SB728

Related Paycheck Fairness Act

US HB17

Related Paycheck Fairness Act This bill addresses wage discrimination on the basis of sex, which is defined to include pregnancy, sexual orientation, gender identity, and sex characteristics. Specifically, it limits an employer's defense that a pay differential is based on a factor other than sex to only bona fide job-related factors in wage discrimination claims, enhances nonretaliation prohibitions, and makes it unlawful to require an employee to sign a contract or waiver prohibiting the employee from disclosing information about the employee's wages. The bill also increases civil penalties for violations of equal pay provisions. Additionally, the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs must train EEOC employees and other affected parties on wage discrimination. The bill directs the Department of Labor to (1) establish and carry out a grant program to provide training in negotiation skills related to compensation and equitable working conditions, (2) conduct studies to eliminate pay disparities between men and women, and (3) make available information on wage discrimination to assist the public in understanding and addressing such discrimination. The bill establishes the National Award for Pay Equity in the Workplace for an employer who has made a substantial effort to eliminate pay disparities between men and women. It also establishes the National Equal Pay Enforcement Task Force to address compliance, public education, and enforcement of equal pay laws. Finally, the bill requires the EEOC to issue regulations for collecting from employers compensation and other employment data according to the sex, race, and national origin of employees for use in enforcing laws prohibiting pay discrimination.

Previously Filed As

US HB2219

Salary History Question Prohibition Act

Similar Bills

No similar bills found.