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Paycheck Fairness Act passes House, unlikely to pass Senate

April 2021 employment law letter
Authors: 
John Clifford, FortneyScott

Following President Joe Biden's inauguration, House Democrats reintroduced the Paycheck Fairness Act, which passed the House on Thursday, April 8. The legislation was sponsored by every Democrat in Congress as well as two House Republicans. During a March hearing of the House Committee on Education and Labor, however, Republican lawmakers argued that if passed, the Act would place an unfair and unnecessary burden on employers and would leave them open to endless litigation.

The bill, which is discussed in detail elsewhere is aimed at closing the pay gap, seeks to materially amend the Equal Pay Act by significantly narrowing employers' primary defense to pay discrimination claims—that an identified pay disparity is the result of a factor "other than sex."If passed, the proposed bill would require employers to prove that any disparity was due to "a bona fide factor other than sex, such as education, training, or experience."

Republicans have argued these changes would essentially eliminate an employer's ability to differentiate employees' pay based on their skills, qualifications, or experience without being subject to litigation.

KPMG to pay $10 million to settle pay bias claims

KPMG has agreed to pay $10 million to nearly 450 female employees who claimed the accounting firm systematically discriminated against women in pay and promotions. The settlement, which is pending approval in the U.S. District Court for the Southern District of New York, will bring an end to nearly a decade of litigation.

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