What This Bill Does
This bill changes the Fair Labor Standards Act (a federal law that sets workplace rules) to stop employers from asking job applicants about their past salary. It also prevents employers from using a job applicant's previous pay when deciding what salary to offer that person.
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Who It Affects
Employers of all sizes, job applicants, current employees, and workers who file complaints about wage practices.
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Key Provisions
* Employers cannot use a job applicant's previous wages when deciding whether to hire that person, including setting minimum or maximum salary requirements based on past pay (Sec. 2(a)(1))
* Employers cannot ask job applicants or former employers about past wages, with one exception: after making a job offer with a specific salary, an employer may ask an applicant to provide past wage information if the applicant wants to negotiate for higher pay (Sec. 2(a)(3))
* Employers cannot fire or punish employees or applicants who oppose these new rules or who take action against discrimination (Sec. 2(a)(4))
* Employers who violate these rules must pay civil penalties starting at $5,000 for a first offense, increasing by $1,000 for each additional offense up to $10,000 total (Sec. 2(b))
* Affected employees or job applicants can sue in federal or state court and receive up to $10,000 in damages plus attorney fees (Sec. 2(b))
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What Changes
If this bill becomes law, employers lose the ability to ask about or use job applicants' salary histories when making hiring and pay decisions. Employers who break this rule face financial penalties and lawsuits from affected workers.
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Important Definitions
"Wage history" means the wages paid to someone by their current or previous employer (Sec. 2(b)).
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I
118TH CONGRESS
1ST SESSION H. R. 1600
To amend the Fair Labor Standards Act of 1938 to prohibit certain practices
by employers relating to restrictions on discussion of employees’ and
prospective employees’ salary and benefit history, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 14, 2023
Ms. NORTON introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To amend the Fair Labor Standards Act of 1938 to prohibit
certain practices by employers relating to restrictions
on discussion of employees’ and prospective employees’
salary and benefit history, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Pay Equity for All
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Act of 2023’’.
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•HR 1600 IH
SEC. 2. PROHIBITIONS RELATING TO PROSPECTIVE EM-
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PLOYEES’ SALARY AND BENEFIT HISTORY.
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(a) IN GENERAL.—The Fair Labor Standards Act of
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1938 (29 U.S.C. 201 et seq.) is amended by inserting
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after section 7 the following new section:
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‘‘SEC. 8. REQUIREMENTS AND PROHIBITIONS RELATING TO
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WAGE, SALARY, AND BENEFIT HISTORY.
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‘‘(a) IN GENERAL.—It shall be an unlawful practice
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for an employer to—
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‘‘(1) rely on the wage history of a prospective
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employee in considering the prospective employee for
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employment, including requiring that a prospective
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employee’s prior wages satisfy minimum or max-
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imum criteria as a condition of being considered for
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employment;
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‘‘(2) rely on the wage history of a prospective
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employee in determining the wages for such prospec-
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tive employee, except that an employer may rely on
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wage history if it is voluntarily provided by a pro-
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spective employee, after the employer makes an offer
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of employment with an offer of compensation to the
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prospective employee, to support a wage higher than
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the wage offered by the employer;
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‘‘(3) seek from a prospective employee or any
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current or former employer the wage history of the
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prospective employee, except that an employer may
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•HR 1600 IH
seek to confirm prior wage information only after an
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offer of employment with compensation has been
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made to the prospective employee and the prospec-
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tive employee responds to the offer by providing
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prior wage information to support a wage higher
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than that offered by the employer; or
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‘‘(4) discharge or in any other manner retaliate
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against any employee or prospective employee be-
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cause the employee or prospective employee—
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‘‘(A) opposed any act or practice made un-
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lawful by this section; or
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‘‘(B) took an action for which discrimina-
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tion is forbidden under section 15(a)(3).
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‘‘(b) DEFINITION.—In this section, the term ‘wage
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history’ means the wages paid to the prospective employee
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by the prospective employee’s current employer or previous
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employer.’’.
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(b) PENALTIES.—Section 16 of such Act (29 U.S.C.
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216) is amended by adding at the end the following new
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subsection:
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‘‘(f)(1) Any person who violates the provisions of sec-
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tion 8 shall—
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‘‘(A) be subject to a civil penalty of $5,000 for
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a first offense, increased by an additional $1,000 for
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each subsequent offense, not to exceed $10,000; and
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•HR 1600 IH
‘‘(B) be liable to each employee or prospective
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employee who was the subject of the violation for
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special damages not to exceed $10,000 plus attor-
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neys’ fees, and shall be subject to such injunctive re-
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lief as may be appropriate.
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‘‘(2) An action to recover the liability described in
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paragraph (1)(B) may be maintained against any em-
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ployer (including a public agency) in any Federal or State
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court of competent jurisdiction by any one or more em-
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ployees or prospective employees for and on behalf of—
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‘‘(A) the employees or prospective employees;
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and
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‘‘(B) other employees or prospective employees
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similarly situated.’’.
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Æ
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