Paycheck Fairness Act Passed in House, Now on to Senate
The House of Representatives passed HR 1338, the “Paycheck Fairness Act” on July 31 by a vote of 247 to 178. While no Democrats opposed the bill, 14 Republicans voted in favor of it. Although there were several amendments that sought to improve the bill, the amendments did not address several vital aspects of the bill that are of concern to manufacturers: eliminating current caps on punitive and compensatory damages in claims made under the Equal Pay Act; exposing employers to unlimited punitive and compensatory damage awards when unintentional pay disparities have occurred; eliminating key employer defenses for pay disparities; and prohibiting employers from disciplining or discharging employees for publicly disclosing sensitive wage information. While Senate action is currently uncertain, the White House has issued a veto threat for the bill. Based on the vote breakdown for final passage on this bill, there currently are not enough votes to override a veto.