Legislation Alert – #2 – House Passes Paycheck Fairness Act

On October 9, 2009, the U.S. House of Representatives also passed the “Paycheck Fairness Act” (“PFA”), which proposes to make several changes to the Equal Pay Act of 1963 (“EPA”).  The EPA prohibits discrimination in compensation on the basis of gender for equal work.  The EPA sets forth the criteria for determining whether the work performed is “equal” and defenses to such a claim. 

The PFA is intended to substantially toughen the EPA, by more narrowly defining the circumstances of a defense to an equal pay claim.  It also adds provisions for nonretaliation, compensatory damages and, in cases of malice or reckless indifference, punitive damages.  The bill specifically permits the filing of an “opt-in” class action.  The damages and class action provisions appear to also apply to other violations of the FLSA.

The PFA is a companion bill to the Fair Pay Act, which the House passed on the same day, and they are likely to be considered  together by the Senate.