II Calendar No. 134 118THCONGRESS 1 STSESSION S. 728 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 MARCH9, 2023 Mrs. M URRAY(for herself, Mr. SCHUMER, Mr. SANDERS, Ms. CORTEZMASTO, Mr. R EED, Mr. LUJA´N, Mr. MERKLEY, Ms. HIRONO, Mr. PADILLA, Ms. C ANTWELL, Mr. SCHATZ, Mr. FETTERMAN, Mr. CASEY, Mr. MURPHY, Mr. M ARKEY, Mr. BROWN, Mr. HICKENLOOPER, Mr. KING, Mr. KAINE, Ms. S INEMA, Mr. WELCH, Mr. BOOKER, Mrs. FEINSTEIN, Ms. STABE- NOW, Ms. WARREN, Mr. MENENDEZ, Mr. CARPER, Mr. WARNER, Ms. B ALDWIN, Ms. SMITH, Ms. KLOBUCHAR, Mr. BLUMENTHAL, Mrs. GILLI- BRAND, Mr. VANHOLLEN, Mr. WARNOCK, Ms. DUCKWORTH, Mrs. SHA- HEEN, Mr. HEINRICH, Mr. DURBIN, Mr. WHITEHOUSE, Mr. COONS, Mr. K ELLY, Ms. HASSAN, Mr. CARDIN, Ms. ROSEN, Mr. WYDEN, Mr. BEN- NET, Mr. MANCHIN, Mr. OSSOFF, Mr. TESTER, and Mr. PETERS) intro- duced the following bill; which was read twice and referred to the Com- mittee on Health, Education, Labor, and Pensions J ULY18, 2023 Reported by Mr. S ANDERS, without amendment 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. VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 728 RS Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Paycheck Fairness 4 Act’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 (1) Women have entered the workforce in 8 record numbers over the past 50 years. 9 (2) Despite the enactment of the Equal Pay Act 10 of 1963, many women continue to earn significantly 11 lower pay than men for equal work. These pay dis-12 parities exist in both the private and governmental 13 sectors. Pay disparities are especially severe for 14 women and girls of color. 15 (3) In many instances, the pay disparities can 16 only be due to continued intentional discrimination 17 or the lingering effects of past discrimination. After 18 controlling for educational attainment, occupation, 19 industry, union status, race, ethnicity, and labor 20 force experience roughly 40 percent of the pay gap 21 remains unexplained. 22 (4) The existence of such pay disparities— 23 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 728 RS (A) depresses the wages of working fami-1 lies who rely on the wages of all members of the 2 family to make ends meet; 3 (B) undermines women’s retirement secu-4 rity, which is often based on earnings while in 5 the workforce; 6 (C) prevents women from realizing their 7 full economic potential, particularly in terms of 8 labor force participation and attachment; 9 (D) has been spread and perpetuated, 10 through commerce and the channels and instru-11 mentalities of commerce, among the workers of 12 the several States; 13 (E) burdens commerce and the free flow of 14 goods in commerce; 15 (F) constitutes an unfair method of com-16 petition in commerce; 17 (G) tends to cause labor disputes, as evi-18 denced by the tens of thousands of charges filed 19 with the Equal Employment Opportunity Com-20 mission against employers between 2010 and 21 2016; 22 (H) interferes with the orderly and fair 23 marketing of goods in commerce; and 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 728 RS (I) in many instances, may deprive workers 1 of equal protection on the basis of sex in viola-2 tion of the 5th and 14th Amendments to the 3 Constitution. 4 (5)(A) Artificial barriers to the elimination of 5 discrimination in the payment of wages on the basis 6 of sex continue to exist decades after the enactment 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 8 201 et seq.) and the Civil Rights Act of 1964 (42 9 U.S.C. 2000a et seq.). 10 (B) These barriers have resulted, in significant 11 part, because the Equal Pay Act of 1963 has not 12 worked as Congress originally intended. Improve-13 ments and modifications to the law are necessary to 14 ensure that the Act provides effective protection to 15 those subject to pay discrimination on the basis of 16 their sex. 17 (C) Elimination of such barriers would have 18 positive effects, including— 19 (i) providing a solution to problems in the 20 economy created by unfair pay disparities; 21 (ii) substantially reducing the number of 22 working women earning unfairly low wages, 23 thereby reducing the dependence on public as-24 sistance; 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •S 728 RS (iii) promoting stable families by enabling 1 all family members to earn a fair rate of pay; 2 (iv) remedying the effects of past discrimi-3 nation on the basis of sex and ensuring that in 4 the future workers are afforded equal protection 5 on the basis of sex; and 6 (v) ensuring equal protection pursuant to 7 Congress’ power to enforce the 5th and 14th 8 Amendments to the Constitution. 9 (6) The Department of Labor and the Equal 10 Employment Opportunity Commission carry out 11 functions to help ensure that women receive equal 12 pay for equal work. 13 (7) The Department of Labor is responsible 14 for— 15 (A) collecting and making publicly avail-16 able information about women’s pay; 17 (B) ensuring that companies receiving 18 Federal contracts comply with anti-discrimina-19 tion affirmative action requirements of Execu-20 tive Order 11246 (relating to equal employment 21 opportunity); 22 (C) disseminating information about wom-23 en’s rights in the workplace; 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •S 728 RS (D) helping women who have been victims 1 of pay discrimination obtain a remedy; and 2 (E) investigating and prosecuting systemic 3 gender based pay discrimination involving gov-4 ernment contractors. 5 (8) The Equal Employment Opportunity Com-6 mission is the primary enforcement agency for 7 claims made under the Equal Pay Act of 1963, and 8 issues regulations and guidance on appropriate in-9 terpretations of the law. 10 (9) Vigorous implementation by the Depart-11 ment of Labor and the Equal Employment Oppor-12 tunity Commission, increased information as a result 13 of the amendments made by this Act, wage data, 14 and more effective remedies, will ensure that women 15 are better able to recognize and enforce their rights. 16 (10) Certain employers have already made 17 great strides in eradicating unfair pay disparities in 18 the workplace and their achievements should be rec-19 ognized. 20 SEC. 3. ENHANCED ENFORCEMENT OF EQUAL PAY RE-21 QUIREMENTS. 22 (a) B ONAFIDEFACTORDEFENSE ANDMODIFICA-23 TION OFSAMEESTABLISHMENTREQUIREMENT.—Section 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •S 728 RS 6(d)(1) of the Fair Labor Standards Act of 1938 (29 1 U.S.C. 206(d)(1)) is amended— 2 (1) by striking ‘‘No employer having’’ and in-3 serting ‘‘(A) No employer having’’; 4 (2) by striking ‘‘any other factor other than 5 sex’’ and inserting ‘‘a bona fide factor other than 6 sex, such as education, training, or experience’’; and 7 (3) by inserting at the end the following: 8 ‘‘(B) The bona fide factor defense described in sub-9 paragraph (A)(iv) shall apply only if the employer dem-10 onstrates that such factor (i) is not based upon or derived 11 from a sex-based differential in compensation; (ii) is job- 12 related with respect to the position in question; (iii) is con-13 sistent with business necessity; and (iv) accounts for the 14 entire differential in compensation at issue. Such defense 15 shall not apply where the employee demonstrates that an 16 alternative employment practice exists that would serve 17 the same business purpose without producing such dif-18 ferential and that the employer has refused to adopt such 19 alternative practice. 20 ‘‘(C) For purposes of subparagraph (A), employees 21 shall be deemed to work in the same establishment if the 22 employees work for the same employer at workplaces lo-23 cated in the same county or similar political subdivision 24 of a State. The preceding sentence shall not be construed 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •S 728 RS as limiting broader applications of the term ‘establish-1 ment’ consistent with rules prescribed or guidance issued 2 by the Equal Employment Opportunity Commission.’’. 3 (b) N ONRETALIATIONPROVISION.—Section 15 of the 4 Fair Labor Standards Act of 1938 (29 U.S.C. 215) is 5 amended— 6 (1) in subsection (a)— 7 (A) in paragraph (3), by striking ‘‘em-8 ployee has filed’’ and all that follows and insert-9 ing ‘‘employee— 10 ‘‘(A) has made a charge or filed any com-11 plaint or instituted or caused to be instituted 12 any investigation, proceeding, hearing, or action 13 under or related to this Act, including an inves-14 tigation conducted by the employer, or has tes-15 tified or is planning to testify or has assisted or 16 participated in any manner in any such inves-17 tigation, proceeding, hearing or action, or has 18 served or is planning to serve on an industry 19 committee; or 20 ‘‘(B) has inquired about, discussed, or dis-21 closed the wages of the employee or another 22 employee (such as by inquiring or discussing 23 with the employer why the wages of the em-24 ployee are set at a certain rate or salary);’’; 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •S 728 RS (B) in paragraph (5), by striking the pe-1 riod at the end and inserting ‘‘; or’’; and 2 (C) by adding at the end the following: 3 ‘‘(6) to require an employee to sign a contract 4 or waiver that would prohibit the employee from dis-5 closing information about the employee’s wages.’’; 6 and 7 (2) by adding at the end the following: 8 ‘‘(c) Subsection (a)(3)(B) shall not apply to instances 9 in which an employee who has access to the wage informa-10 tion of other employees as a part of such employee’s essen-11 tial job functions discloses the wages of such other employ-12 ees to individuals who do not otherwise have access to such 13 information, unless such disclosure is in response to a 14 complaint or charge or in furtherance of an investigation, 15 proceeding, hearing, or action under section 6(d), includ-16 ing an investigation conducted by the employer. Nothing 17 in this subsection shall be construed to limit the rights 18 of an employee provided under any other provision of 19 law.’’. 20 (c) E NHANCEDPENALTIES.—Section 16(b) of the 21 Fair Labor Standards Act of 1938 (29 U.S.C. 216(b)) is 22 amended— 23 (1) by inserting after the first sentence the fol-24 lowing: ‘‘Any employer who violates section 6(d) 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •S 728 RS shall additionally be liable for such compensatory 1 damages, or, where the employee demonstrates that 2 the employer acted with malice or reckless indiffer-3 ence, punitive damages as may be appropriate, ex-4 cept that the United States shall not be liable for 5 punitive damages.’’; 6 (2) in the sentence beginning ‘‘An action to’’, 7 by striking ‘‘the preceding sentences’’ and inserting 8 ‘‘any of the preceding sentences of this subsection’’; 9 (3) in the sentence beginning ‘‘No employees 10 shall’’, by striking ‘‘No employees’’ and inserting 11 ‘‘Except with respect to class actions brought to en-12 force section 6(d), no employee’’; 13 (4) by inserting after the sentence referred to 14 in paragraph (3), the following: ‘‘Notwithstanding 15 any other provision of Federal law, any action 16 brought to enforce section 6(d) may be maintained 17 as a class action as provided by the Federal Rules 18 of Civil Procedure.’’; and 19 (5) in the sentence beginning ‘‘The court in’’— 20 (A) by striking ‘‘in such action’’ and in-21 serting ‘‘in any action brought to recover the li-22 ability prescribed in any of the preceding sen-23 tences of this subsection’’; and 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •S 728 RS (B) by inserting before the period the fol-1 lowing: ‘‘, including expert fees’’. 2 (d) A CTION BYSECRETARY.—Section 16(c) of the 3 Fair Labor Standards Act of 1938 (29 U.S.C. 216(c)) is 4 amended— 5 (1) in the first sentence— 6 (A) by inserting ‘‘or, in the case of a viola-7 tion of section 6(d), additional compensatory or 8 punitive damages, as described in subsection 9 (b),’’ before ‘‘and the agreement’’; and 10 (B) by inserting before the period the fol-11 lowing: ‘‘, or such compensatory or punitive 12 damages, as appropriate’’; 13 (2) in the second sentence, by inserting before 14 the period the following: ‘‘and, in the case of a viola-15 tion of section 6(d), additional compensatory or pu-16 nitive damages, as described in subsection (b)’’; 17 (3) in the third sentence, by striking ‘‘the first 18 sentence’’ and inserting ‘‘the first or second sen-19 tence’’; and 20 (4) in the sixth sentence— 21 (A) by striking ‘‘commenced in the case’’ 22 and inserting ‘‘commenced— 23 ‘‘(1) in the case’’; 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 12 •S 728 RS (B) by striking the period and inserting ‘‘; 1 or’’; and 2 (C) by adding at the end the following: 3 ‘‘(2) in the case of a class action brought to en-4 force section 6(d), on the date on which the indi-5 vidual becomes a party plaintiff to the class action.’’. 6 SEC. 4. TRAINING. 7 The Equal Employment Opportunity Commission 8 and the Office of Federal Contract Compliance Programs, 9 subject to the availability of funds appropriated under sec-10 tion 11, shall provide training to Commission employees 11 and affected individuals and entities on matters involving 12 discrimination in the payment of wages. 13 SEC. 5. NEGOTIATION SKILLS TRAINING. 14 (a) P ROGRAMAUTHORIZED.— 15 (1) I N GENERAL.—The Secretary of Labor, 16 after consultation with the Secretary of Education, 17 is authorized to establish and carry out a grant pro-18 gram. 19 (2) G RANTS.—In carrying out the program, the 20 Secretary of Labor may make grants on a competi-21 tive basis to eligible entities to carry out negotiation 22 skills training programs for the purposes of address-23 ing pay disparities, including through outreach to 24 women and girls. 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 13 •S 728 RS (3) ELIGIBLE ENTITIES.—To be eligible to re-1 ceive a grant under this subsection, an entity shall 2 be a public agency, such as a State, a local govern-3 ment in a metropolitan statistical area (as defined 4 by the Office of Management and Budget), a State 5 educational agency, or a local educational agency, a 6 private nonprofit organization, or a community- 7 based organization. 8 (4) A PPLICATION.—To be eligible to receive a 9 grant under this subsection, an entity shall submit 10 an application to the Secretary of Labor at such 11 time, in such manner, and containing such informa-12 tion as the Secretary of Labor may require. 13 (5) U SE OF FUNDS.—An entity that receives a 14 grant under this subsection shall use the funds made 15 available through the grant to carry out an effective 16 negotiation skills training program for the purposes 17 described in paragraph (2). 18 (b) I NCORPORATINGTRAININGINTOEXISTINGPRO-19 GRAMS.—The Secretary of Labor and the Secretary of 20 Education shall issue regulations or policy guidance that 21 provides for integrating the negotiation skills training, to 22 the extent practicable, into programs authorized under— 23 (1) in the case of the Secretary of Education, 24 the Elementary and Secondary Education Act of 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 14 •S 728 RS 1965 (20 U.S.C. 6301 et seq.), the Carl D. Perkins 1 Career and Technical Education Act of 2006 (20 2 U.S.C. 2301 et seq.), the Higher Education Act of 3 1965 (20 U.S.C. 1001 et seq.), and other programs 4 carried out by the Department of Education that the 5 Secretary of Education determines to be appro-6 priate; and 7 (2) in the case of the Secretary of Labor, the 8 Workforce Innovation and Opportunity Act (29 9 U.S.C. 3101 et seq.), and other programs carried 10 out by the Department of Labor that the Secretary 11 of Labor determines to be appropriate. 12 (c) R EPORT.—Not later than 18 months after the 13 date of enactment of this Act, and annually thereafter, 14 the Secretary of Labor, in consultation with the Secretary 15 of Education, shall prepare and submit to Congress a re-16 port describing the activities conducted under this section 17 and evaluating the effectiveness of such activities in 18 achieving the purposes of this section. 19 SEC. 6. RESEARCH, EDUCATION, AND OUTREACH. 20 (a) I NGENERAL.—Not later than 18 months after 21 the date of enactment of this Act, and periodically there-22 after, the Secretary of Labor shall conduct studies and 23 provide information to employers, labor organizations, and 24 the general public concerning the means available to elimi-25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 15 •S 728 RS nate pay disparities between men and women (including 1 women who are Asian American, Black or African Amer-2 ican, Hispanic American or Latino, Native American or 3 Alaska Native, Native Hawaiian or Pacific Islander, and 4 White American), including— 5 (1) conducting and promoting research to de-6 velop the means to correct expeditiously the condi-7 tions leading to the pay disparities, with specific at-8 tention paid to women and girls from historically 9 underrepresented and minority groups; 10 (2) publishing and otherwise making available 11 to employers, labor organizations, professional asso-12 ciations, educational institutions, the media, and the 13 general public the findings resulting from studies 14 and other materials, relating to eliminating the pay 15 disparities; 16 (3) sponsoring and assisting State, local, and 17 community informational and educational programs; 18 (4) providing information to employers, labor 19 organizations, professional associations, and other 20 interested persons on the means of eliminating the 21 pay disparities; and 22 (5) recognizing and promoting the achievements 23 of employers, labor organizations, and professional 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 16 •S 728 RS associations that have worked to eliminate the pay 1 disparities. 2 (b) R EPORT ONGENDERPAYGAP INTEENAGE 3 L ABORFORCE.— 4 (1) R EPORT REQUIRED .—Not later than one 5 year after the date of the enactment of this Act, the 6 Secretary of Labor, acting through the Director of 7 the Women’s Bureau and in coordination with the 8 Commissioner of Labor Statistics, shall— 9 (A) submit to Congress a report on the 10 gender pay gap in the teenage labor force; and 11 (B) make the report available on a publicly 12 accessible website of the Department of Labor. 13 (2) E LEMENTS.—The report under subsection 14 (a) shall include the following: 15 (A) An examination of trends and potential 16 solutions relating to the teenage gender pay 17 gap. 18 (B) An examination of how the teenage 19 gender pay gap potentially translates into 20 greater wage gaps in the overall labor force. 21 (C) An examination of overall lifetime 22 earnings and losses for informal and formal 23 jobs for women, including women of color. 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 17 •S 728 RS (D) An examination of the teenage gender 1 pay gap, including a comparison of the average 2 amount earned by males and females, respec-3 tively, in informal jobs, such as babysitting and 4 other freelance jobs, as well as formal jobs, 5 such as retail, restaurant, and customer service. 6 (E) A comparison of— 7 (i) the types of tasks typically per-8 formed by women from the teenage years 9 through adulthood within certain informal 10 jobs, such as babysitting and other free-11 lance jobs, and formal jobs, such as retail, 12 restaurant, and customer service; and 13 (ii) the types of tasks performed by 14 younger males in such positions. 15 (F) Interviews and surveys with workers 16 and employers relating to early gender-based 17 pay discrepancies. 18 (G) Recommendations for— 19 (i) addressing pay inequality for 20 women from the teenage years through 21 adulthood, including such women of color; 22 (ii) addressing any disadvantages ex-23 perienced by young women with respect to 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 18 •S 728 RS work experience and professional develop-1 ment; 2 (iii) the development of standards and 3 best practices for workers and employees 4 to ensure better pay for young women and 5 the prevention of early inequalities in the 6 workplace; and 7 (iv) expanding awareness for teenage 8 girls on pay rates and employment rights 9 in order to reduce greater inequalities in 10 the overall labor force. 11 SEC. 7. ESTABLISHMENT OF THE NATIONAL AWARD FOR 12 PAY EQUITY IN THE WORKPLACE. 13 (a) I NGENERAL.—There is established the Secretary 14 of Labor’s National Award for Pay Equity in the Work-15 place, which shall be awarded, on an annual basis, to an 16 employer to encourage proactive efforts to comply with 17 section 6(d) of the Fair Labor Standards Act of 1938 (29 18 U.S.C. 206(d)), as amended by this Act. 19 (b) C RITERIA FORQUALIFICATION.—The Secretary 20 of Labor shall set criteria for receipt of the award, includ-21 ing a requirement that an employer has made substantial 22 effort to eliminate pay disparities between men and 23 women, and deserves special recognition as a consequence 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 19 •S 728 RS of such effort. The Secretary shall establish procedures for 1 the application and presentation of the award. 2 (c) B USINESS.—In this section, the term ‘‘employer’’ 3 includes— 4 (1)(A) a corporation, including a nonprofit cor-5 poration; 6 (B) a partnership; 7 (C) a professional association; 8 (D) a labor organization; and 9 (E) a business entity similar to an entity de-10 scribed in any of subparagraphs (A) through (D); 11 (2) an entity carrying out an education referral 12 program, a training program, such as an apprentice-13 ship or management training program, or a similar 14 program; and 15 (3) an entity carrying out a joint program, 16 formed by a combination of any entities described in 17 paragraph (1) or (2). 18 SEC. 8. COLLECTION OF PAY INFORMATION BY THE EQUAL 19 EMPLOYMENT OPPORTUNITY COMMISSION. 20 Section 709 of the Civil Rights Act of 1964 (42 21 U.S.C. 2000e–8) is amended by adding at the end the fol-22 lowing: 23 ‘‘(f)(1) Not later than 18 months after the date of 24 enactment of this subsection, the Commission shall pro-25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 20 •S 728 RS vide for the collection from employers of compensation 1 data and other employment-related data (including hiring, 2 termination, and promotion data) disaggregated by the 3 sex, race, and ethnic identity of employees. 4 ‘‘(2) In carrying out paragraph (1), the Commission 5 shall have as its primary consideration the most effective 6 and efficient means for enhancing the enforcement of Fed-7 eral laws prohibiting pay discrimination. For this purpose, 8 the Commission shall consider factors including the impo-9 sition of burdens on employers, the frequency of required 10 reports (including the size of employers required to pre-11 pare reports), appropriate protections for maintaining 12 data confidentiality, and the most effective format to re-13 port such data. 14 ‘‘(3)(A) For each 12-month reporting period for an 15 employer, the compensation data collected under para-16 graph (1) shall include, for each range of taxable com-17 pensation described in subparagraph (B), disaggregated 18 by the categories described in subparagraph (E)— 19 ‘‘(i) the number of employees of the employer 20 who earn taxable compensation in an amount that 21 falls within such taxable compensation range; and 22 ‘‘(ii) the total number of hours worked by such 23 employees. 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 21 •S 728 RS ‘‘(B) Subject to adjustment under subparagraph (C), 1 the taxable compensation ranges described in this sub-2 paragraph are as follows: 3 ‘‘(i) Not more than $19,239. 4 ‘‘(ii) Not less than $19,240 and not more than 5 $24,439. 6 ‘‘(iii) Not less than $24,440 and not more than 7 $30,679. 8 ‘‘(iv) Not less than $30,680 and not more than 9 $38,999. 10 ‘‘(v) Not less than $39,000 and not more than 11 $49,919. 12 ‘‘(vi) Not less than $49,920 and not more than 13 $62,919. 14 ‘‘(vii) Not less than $62,920 and not more than 15 $80,079. 16 ‘‘(viii) Not less than $80,080 and not more 17 than $101,919. 18 ‘‘(ix) Not less than $101,920 and not more 19 than $128,959. 20 ‘‘(x) Not less than $128,960 and not more than 21 $163,799. 22 ‘‘(xi) Not less than $163,800 and not more 23 than $207,999. 24 ‘‘(xii) Not less than $208,000. 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 22 •S 728 RS ‘‘(C) The Commission may adjust the taxable com-1 pensation ranges under subparagraph (B)— 2 ‘‘(i) if the Commission determines that such ad-3 justment is necessary to enhance enforcement of 4 Federal laws prohibiting pay discrimination; or 5 ‘‘(ii) for inflation, in consultation with the Bu-6 reau of Labor Statistics. 7 ‘‘(D) In collecting data described in subparagraph 8 (A)(ii), the Commission shall provide that, with respect 9 to an employee who the employer is not required to com-10 pensate for overtime employment under section 7 of the 11 Fair Labor Standards Act of 1938 (29 U.S.C. 207), an 12 employer may report— 13 ‘‘(i) in the case of a full-time employee, that 14 such employee works 40 hours per week, and in the 15 case of a part-time employee, that such employee 16 works 20 hours per week; or 17 ‘‘(ii) the actual number of hours worked by 18 such employee. 19 ‘‘(E) The categories described in this subparagraph 20 shall be determined by the Commission and shall in-21 clude— 22 ‘‘(i) race; 23 ‘‘(ii) ethnic identity; 24 ‘‘(iii) sex; and 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 23 •S 728 RS ‘‘(iv) job categories, including the job categories 1 described in the instructions for the Equal Employ-2 ment Opportunity Employer Information Report 3 EEO–1, as in effect on the date of the enactment 4 of this subsection. 5 ‘‘(F) The Commission shall use the compensation 6 data collected under paragraph (1)— 7 ‘‘(i) to enhance— 8 ‘‘(I) the investigation of charges filed 9 under section 706 or section 6(d) of the Fair 10 Labor Standards Act of 1938 (29 U.S.C. 11 206(d)); and 12 ‘‘(II) the allocation of resources to inves-13 tigate such charges; and 14 ‘‘(ii) for any other purpose that the Commission 15 determines appropriate. 16 ‘‘(G) The Commission shall annually make publicly 17 available aggregate compensation data collected under 18 paragraph (1) for the categories described in subpara-19 graph (E), disaggregated by industry, occupation, and 20 core based statistical area (as defined by the Office of 21 Management and Budget). 22 ‘‘(4) The compensation data under paragraph (1) 23 shall be collected from each employer that— 24 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 24 •S 728 RS ‘‘(A) is a private employer that has 100 or 1 more employees, including such an employer that is 2 a contractor with the Federal Government, or a sub-3 contractor at any tier thereof; or 4 ‘‘(B) the Commission determines appropriate.’’. 5 SEC. 9. REINSTATEMENT OF PAY EQUITY PROGRAMS AND 6 PAY EQUITY DATA COLLECTION. 7 (a) B UREAU OFLABORSTATISTICSDATACOLLEC-8 TION.—The Commissioner of Labor Statistics shall con-9 tinue to collect data on women workers in the Current 10 Employment Statistics survey. 11 (b) O FFICE OFFEDERALCONTRACTCOMPLIANCE 12 P ROGRAMSINITIATIVES.—The Director of the Office of 13 Federal Contract Compliance Programs shall ensure that 14 employees of the Office— 15 (1)(A) shall use the full range of investigatory 16 tools at the Office’s disposal, including pay grade 17 methodology; 18 (B) in considering evidence of possible com-19 pensation discrimination— 20 (i) shall not limit its consideration to a 21 small number of types of evidence; and 22 (ii) shall not limit its evaluation of the evi-23 dence to a small number of methods of evalu-24 ating the evidence; and 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 25 •S 728 RS (C) shall not require a multiple regression anal-1 ysis or anecdotal evidence for a compensation dis-2 crimination case; 3 (2) for purposes of its investigative, compliance, 4 and enforcement activities, shall define ‘‘similarly 5 situated employees’’ in a way that is consistent with 6 and not more stringent than the definition provided 7 in item 1 of subsection A of section 10–III of the 8 Equal Employment Opportunity Commission Com-9 pliance Manual (2000), and shall consider only fac-10 tors that the Office’s investigation reveals were used 11 in making compensation decisions; and 12 (3) shall implement a survey to collect com-13 pensation data and other employment-related data 14 (including hiring, termination, and promotion data) 15 and designate not less than half of all nonconstruc-16 tion contractor establishments each year to prepare 17 and file such survey, and shall review and utilize the 18 responses to such survey to identify contractor es-19 tablishments for further evaluation and for other en-20 forcement purposes as appropriate. 21 (c) D EPARTMENT OF LABORDISTRIBUTION OF 22 W AGEDISCRIMINATIONINFORMATION.—The Secretary of 23 Labor shall make readily available (in print, on the De-24 partment of Labor website, and through any other forum 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 26 •S 728 RS that the Department may use to distribute compensation 1 discrimination information), accurate information on com-2 pensation discrimination, including statistics, explanations 3 of employee rights, historical analyses of such discrimina-4 tion, instructions for employers on compliance, and any 5 other information that will assist the public in under-6 standing and addressing such discrimination. 7 SEC. 10. PROHIBITIONS RELATING TO PROSPECTIVE EM-8 PLOYEES’ SALARY AND BENEFIT HISTORY. 9 (a) I NGENERAL.—The Fair Labor Standards Act of 10 1938 (29 U.S.C. 201 et seq.) is amended by inserting 11 after section 7 the following new section: 12 ‘‘SEC. 8. REQUIREMENTS AND PROHIBITIONS RELATING TO 13 WAGE, SALARY, AND BENEFIT HISTORY. 14 ‘‘(a) I NGENERAL.—It shall be an unlawful practice 15 for an employer to— 16 ‘‘(1) rely on the wage history of a prospective 17 employee in considering the prospective employee for 18 employment, including requiring that a prospective 19 employee’s prior wages satisfy minimum or max-20 imum criteria as a condition of being considered for 21 employment; 22 ‘‘(2) rely on the wage history of a prospective 23 employee in determining the wages for such prospec-24 tive employee, except that an employer may rely on 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 27 •S 728 RS wage history if it is voluntarily provided by a pro-1 spective employee, after the employer makes an offer 2 of employment with an offer of compensation to the 3 prospective employee, to support a wage higher than 4 the wage offered by the employer; 5 ‘‘(3) seek from a prospective employee or any 6 current or former employer the wage history of the 7 prospective employee, except that an employer may 8 seek to confirm prior wage information only after an 9 offer of employment with compensation has been 10 made to the prospective employee and the prospec-11 tive employee responds to the offer by providing 12 prior wage information to support a wage higher 13 than that offered by the employer; or 14 ‘‘(4) discharge or in any other manner retaliate 15 against any employee or prospective employee be-16 cause the employee or prospective employee— 17 ‘‘(A) opposed any act or practice made un-18 lawful by this section; or 19 ‘‘(B) took an action for which discrimina-20 tion is forbidden under section 15(a)(3). 21 ‘‘(b) D EFINITION.—In this section, the term ‘wage 22 history’ means the wages paid to the prospective employee 23 by the prospective employee’s current employer or previous 24 employer.’’. 25 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 28 •S 728 RS (b) PENALTIES.—Section 16 of such Act (29 U.S.C. 1 216) is amended by adding at the end the following new 2 subsection: 3 ‘‘(f)(1) Any person who violates the provisions of sec-4 tion 8 shall— 5 ‘‘(A) be subject to a civil penalty of $5,000 for 6 a first offense, increased by an additional $1,000 for 7 each subsequent offense, not to exceed $10,000; and 8 ‘‘(B) be liable to each employee or prospective 9 employee who was the subject of the violation for 10 special damages not to exceed $10,000 plus attor-11 neys’ fees, and shall be subject to such injunctive re-12 lief as may be appropriate. 13 ‘‘(2) An action to recover the liability described in 14 paragraph (1)(B) may be maintained against any em-15 ployer (including a public agency) in any Federal or State 16 court of competent jurisdiction by any one or more em-17 ployees or prospective employees for and on behalf of— 18 ‘‘(A) the employees or prospective employees; 19 and 20 ‘‘(B) other employees or prospective employees 21 similarly situated.’’. 22 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 29 •S 728 RS SEC. 11. AUTHORIZATION OF APPROPRIATIONS. 1 (a) A UTHORIZATION OF APPROPRIATIONS.—There 2 are authorized to be appropriated such sums as may be 3 necessary to carry out this Act. 4 (b) P ROHIBITION ONEARMARKS.—None of the funds 5 appropriated pursuant to subsection (a) for purposes of 6 the grant program in section 5 of this Act may be used 7 for a congressional earmark as defined in clause 9(e) of 8 rule XXI of the Rules of the House of Representatives. 9 SEC. 12. SMALL BUSINESS ASSISTANCE. 10 (a) E FFECTIVEDATE.—This Act and the amend-11 ments made by this Act shall take effect on the date that 12 is 6 months after the date of enactment of this Act. 13 (b) T ECHNICALASSISTANCEMATERIALS.—The Sec-14 retary of Labor and the Commissioner of the Equal Em-15 ployment Opportunity Commission shall jointly develop 16 technical assistance material to assist small enterprises in 17 complying with the requirements of this Act and the 18 amendments made by this Act. 19 (c) S MALLBUSINESSES.—A small enterprise shall be 20 exempt from the provisions of this Act, and the amend-21 ments made by this Act, to the same extent that such en-22 terprise is exempt from the requirements of the Fair 23 Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) pur-24 suant to clauses (i) and (ii) of section 3(s)(1)(A) of such 25 Act (29 U.S.C. 203(s)(1)(A)). 26 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB 30 •S 728 RS SEC. 13. RULE OF CONSTRUCTION. 1 Nothing in this Act, or in any amendments made by 2 this Act, shall affect the obligation of employers and em-3 ployees to fully comply with all applicable immigration 4 laws, including being subject to any penalties, fines, or 5 other sanctions. 6 SEC. 14. SEVERABILITY. 7 If any provision of this Act, an amendment made by 8 this Act, or the application of that provision or amend-9 ment to particular persons or circumstances is held invalid 10 or found to be unconstitutional, the remainder of this Act, 11 the amendments made by this Act, or the application of 12 that provision to other persons or circumstances shall not 13 be affected. 14 VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB Calendar No. 134 118 TH CONGRESS 1 ST S ESSION S. 728 A BILL To amend the Fair Labor Standards Act of 1938 to provide more effective remedies to victims of discrimination in the payment of wages on the basis of sex, and for other purposes. J ULY 18, 2023 Reported without amendment VerDate Sep 11 2014 02:30 Jul 19, 2023 Jkt 039200 PO 00000 Frm 00032 Fmt 6651 Sfmt 6651 E:\BILLS\S728.RS S728 pbinns on DSKJLVW7X2PROD with $$_JOB