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ARTICLE · 29 SEPTEMBER 2010

Senate Vote on Paycheck Fairness Act May Be Imminent

Franczek
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Senate watchers are reporting that the Senate may vote on the Paycheck Fairness Act (PFA) (S. 3772) as early as this week. The House previously passed the PFA in 2009, but the law failed to clear the Senate.

United StatesEmployment and HR
William Pokorny
William Pokorny

Senate watchers are reporting that the Senate may vote on the Paycheck Fairness Act (PFA) (S. 3772) as early as this week. The House previously passed the PFA in 2009, but the law failed to clear the Senate. If this law passes, it will mark a major expansion of federal employment discrimination law and will force many employers to dramatically change their compensation practices to mitigate the risk of pay discrimination lawsuits.

The PFA amends the existing Equal Pay Act (EPA), which prohibits pay discrimination based upon sex. The PFA makes five key changes to existing law:

  1. Under the current EPA, employers can defend against claims of pay discrimination by demonstrating that a pay difference between male and female employees is caused by "any factor other than sex." Under the PFA, employers would have to show that the "factor other than sex" is "bona fide," meaning that it is "not based upon or derived from a sex-based differential in compensation," is

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