House passes Paycheck Fairness Act

Modern Casting, Sept, 2008

The U.S. House of Representatives on July 31 passed a bill that would lift the cap on compensatory and punitive damages that women may be awarded in wage discrimination cases. The Paycheck Fairness Act (H.R. 1388) also requires employers to provide a business reason for why females are paid less than their male counterparts. The bill passed by a vote of 247-178 and is sponsored by Rep. Rosa DeLauro (D-Conn.).

The bill could remove the caps on punitive and compensatory damages in claims made under the Equal Pay Act, thereby providing unlimited monetary remedies for claims; allow for punitive and compensatory damages on unintentional pay disparities; eliminate employer defense for paying people differently because they work in different parts of the country or considering their prior salary history; and make it easier for plaintiffs to become parties to large class actions.

The White House opposes the bill and vows to veto it should the Senate's companion bill (S. 766) pass. As it stands, the bill does not have enough votes to override a veto. MC

For more information, contact Alicia Oman, AFS Washington Office, at aoman@afsinc.org or 202-842-4864.