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Pending Federal Pay Equity Legislation Could Eliminate a Real Reason for Pay Differences

The Paycheck Fairness Act (pending federal bill H.R. 7) was reintroduced on January 28, 2021 and as currently proposed, would drastically alter the federal law effectively eliminating a defense of the Equal Pay Act of 1963, the landmark legislation designed to reduce gender discrimination in the workplace. Specifically, under current law, an employer can provide a defense for a wage differential to exist, due to any factor other than sex. The pending bill would require employers to demonstrate that the wage differential is a matter of business necessity.

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