Workforce Management
August 1, 2008
Women who are victims of pay discrimination could sue for unlimited punitive and compensatory damages under a bill approved by the House of Representatives on Thursday, July 31.
The measure, which updates a mid-1960s law prohibiting wage disparities between men and women performing the same job, has drawn a veto threat from the White House. It passed by a 247-178 vote in the House. Its prospects in the Senate are unclear.
Under the bill, a company that pays women at a different rate than men would have to prove the practice is based on a business necessity.
Wage comparisons between men and women could be made at business operations within the same county. In addition, the bill would permit workers to share pay information and prohibit employers from banning such discussions from the office.
It also would establish Department of Labor grants for “negotiation skills training programs for girls and women.”
The bill could significantly increase penalties for businesses that are found to pay men more than women. The unlimited damages apply even if the discrimination is unintentional. Under Title VII of the Civil Rights Act, damages are capped at $300,000.
The House approved an amendment, 397-29, that would require a plaintiff show an employer intentionally discriminated in order to collect punitive damages.The increased exposure of businesses to pay lawsuits stoked Bush administration opposition.
The bill “would make enforcement of [anti-discrimination] laws more difficult and error-prone and invite a surge of litigation,” said a White House policy statement. “It also would encourage discrimination claims to be made based on factors unrelated to actual pay discrimination by allowing pay comparisons between potentially different labor markets.” [To see the entire story, go to: http://www.workforce.com/section/00/article/25/68/74.php ]
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