[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 841 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 841

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

                             April 19, 2005

   Mrs. Clinton (for herself, Mr. Reid, Mr. Kennedy, Mr. Harkin, Mr. 
  Durbin, Ms. Landrieu, Mr. Corzine, Mr. Leahy, Mr. Schumer, and Ms. 
   Stabenow) 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 over 
        the past 50 years.
            (2) Even today, 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) undermines women's retirement security, which 
                is often based on earnings while in the workforce;
                    (C) prevents the optimum utilization of available 
                labor resources;
                    (D) has been spread and perpetuated, through 
                commerce and the channels and instrumentalities of 
                commerce, among the workers of the several States;
                    (E) burdens commerce and the free flow of goods in 
                commerce;
                    (F) constitutes an unfair method of competition in 
                commerce;
                    (G) leads to labor disputes burdening and 
                obstructing commerce and the free flow of goods in 
                commerce;
                    (H) interferes with the orderly and fair marketing 
                of goods in commerce; and
                    (I) 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 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;
                    (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) The Department of Labor has important and unique 
        responsibilities to help ensure that women receive equal pay 
        for doing work that is substantially equal to men's work.
            (6) The Department of Labor is responsible for--
                    (A) collecting and making publicly available 
                information about women's pay;
                    (B) ensuring that companies receiving Federal 
                contracts comply with the antidiscrimination and the 
                affirmative action requirements of Executive Order 
                11246 (relating to equal employment opportunity);
                    (C) disseminating information about women's rights 
                in the workplace;
                    (D) helping women who have been victims of pay 
                discrimination obtain a remedy; and
                    (E) being proactive in investigating and 
                prosecuting equal pay violations, especially systemic 
                violations, and in enforcing all of its mandates.
            (7) With a stronger commitment by the Department of Labor 
        to its responsibilities, increased information about the 
        provisions added by the Equal Pay Act of 1963, wage data, and 
        more effective remedies, women will be better able to recognize 
        and enforce their rights.
            (8) 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 the bona fide factor defense shall apply 
only if--
            ``(I) the employer demonstrates that--
                    ``(aa) such factor--
                            ``(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--
            ``(1) in the case'';
                    (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 11, shall provide training to 
Commission employees and affected individuals and entities on matters 
involving discrimination in the payment of wages.

SEC. 5. NEGOTIATION SKILLS TRAINING FOR GIRLS AND WOMEN.

    (a) Program Authorized.--
            (1) In general.--The Secretary of Labor, after consultation 
        with the Secretary of Education, is authorized to establish and 
        carry out a grant program.
            (2) Grants.--In carrying out the program, the Secretary of 
        Labor may make grants on a competitive basis to eligible 
        entities, to carry out negotiation skills training programs for 
        girls and women.
            (3) Eligible entities.--To be eligible to receive a grant 
        under this subsection, an entity shall be a public agency, such 
        as a State, a local government in a metropolitan statistical 
        area (as defined by the Office of Management and Budget), a 
        State educational agency, or a local educational agency, a 
        private nonprofit organization, or a community-based 
        organization.
            (4) Application.--To be eligible to receive a grant under 
        this subsection, an entity shall submit an application to the 
        Secretary of Labor at such time, in such manner, and containing 
        such information as the Secretary of Labor may require.
            (5) Use of funds.--An entity that receives a grant under 
        this subsection shall use the funds made available through the 
        grant to carry out an effective negotiation skills training 
        program that empowers girls and women. The training provided 
        through the program shall help girls and women strengthen their 
        negotiation skills to allow the girls and women to obtain 
        higher salaries and the best compensation packages possible for 
        themselves.
    (b) Incorporating Training Into Existing Programs.--The Secretary 
of Labor and the Secretary of Education shall issue regulations or 
policy guidance that provides for integrating the negotiation skills 
training, to the extent practicable, into programs authorized under--
            (1) in the case of the Secretary of Education, the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
        et seq.), the Carl D. Perkins Vocational and Technical 
        Education Act of 1998 (20 U.S.C. 2301 et seq.), the Higher 
        Education Act of 1965 (20 U.S.C. 1001 et seq.), and other 
        programs carried out by the Department of Education that the 
        Secretary of Education determines to be appropriate; and
            (2) in the case of the Secretary of Labor, the Workforce 
        Investment Act of 1998 (29 U.S.C. 2801 et seq.), and other 
        programs carried out by the Department of Labor that the 
        Secretary of Labor determines to be appropriate.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter, the Secretary of Labor and the 
Secretary of Education shall prepare and submit to Congress a report 
describing the activities conducted under this section.

SEC. 6. 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. 7. TECHNICAL ASSISTANCE AND EMPLOYER RECOGNITION PROGRAM.

    (a) Guidelines.--
            (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. 8. ESTABLISHMENT OF THE NATIONAL AWARD FOR PAY EQUITY IN THE 
              WORKPLACE.

    (a) In General.--There is established the Secretary of Labor's 
National Award for Pay Equity in the Workplace, which shall be 
evidenced by a medal bearing the inscription ``Secretary of Labor's 
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;
            (B) a partnership;
            (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. 9. 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. 10. REINSTATEMENT OF PAY EQUITY PROGRAMS AND ENFORCEMENT EFFORTS.

    (a) Bureau of Labor Statistics Data Collection.--The Commissioner 
of Labor Statistics shall collect data on women workers in the Current 
Employment Statistics survey.
    (b) Office of Federal Contract Compliance Programs Initiatives.--
            (1) In general.--The Director of the Office of Federal 
        Contract Compliance Programs shall ensure that employees of the 
        Office--
                    (A)(i) shall use the full range of investigatory 
                tools at the Office's disposal, including pay grade 
                methodology;
                    (ii) in considering evidence of possible 
                compensation discrimination--
                            (I) shall not limit its consideration to a 
                        small number of types of evidence; and
                            (II) shall not limit its evaluation of the 
                        evidence to a small number of methods of 
                        evaluating the evidence; and
                    (iii) shall not require a multiple regression 
                analysis or anecdotal evidence for a compensation 
                discrimination case;
                    (B) for purposes of its investigative, compliance, 
                and enforcement activities, shall define ``similarly 
                situated employees'' in a way that is consistent with 
                and not more stringent than the definition provided in 
                item 1 of subsection A of section 10-III of the Equal 
                Employment Opportunity Commission Compliance Manual 
                (2000), and shall consider only factors that the 
                Office's investigation reveals were used in making 
                compensation decisions; and
                    (C) shall designate not less than half of all 
                nonconstruction contractor establishments each year to 
                prepare and file the Equal Opportunity Survey, required 
                by section 60-2.18 of title 41, Code of Federal 
                Regulations, and shall review and utilize the responses 
                to the survey to identify contractor establishments for 
                further evaluation.
            (2) Regulations.--In promulgating any regulations with 
        respect to the compensation discrimination cases, the Secretary 
        of Labor, in establishing standards for similarly situated 
        employees, shall include examples of similar jobs.
    (c) Department of Labor Distribution of Wage Discrimination 
Information.--The Secretary of Labor shall make readily available (in 
print, on the Department of Labor website, and through any other forum 
that the Department may use to distribute compensation discrimination 
information), accurate information on compensation discrimination, 
including statistics, explanations of employee rights, historical 
analyses of such discrimination, instructions for employers on 
compliance, and any other information that will assist the public in 
understanding and addressing such discrimination.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this Act.
                                 <all>