On March 27th, the House of Representatives passed HR 7, the “Paycheck Fairness Act,” by a vote of 242 to 187. The bill includes several provisions intended to promote gender pay equity in the workplace.
Section 10 of the bill would amend the federal Fair Labor Standards Act (FLSA) to restrict the ability of covered employers to consider wage history information during the hiring process.
The bill would make it unlawful for covered employers to:
The bill would add new penalty provisions to the FLSA for violation of these requirements. Any person who violates the provisions of the new Section 8 would:
Actions could be brought on an individual or class basis in federal or state court.
The bill, while a priority in the Democratic House, is not expected to progress through the Republican-controlled Senate without substantial revision. The bill is, however, another indication of legislative interest in restricting the use of salary history information as part of the pre-employment process. A growing number of states and localities have adopted restrictions of this type. In some cases the restrictions apply to the private sector, in other cases, jurisdictions are restricting the ability of government agencies to request or utilize wage history information.
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