Paycheck Fairness Act fails to get the 60 votes necessary to move forward

The Senate failed to advance the most recent version of the Paycheck Fairness Act. On June 11, 2021, in a procedural cloture vote the Act did not receive the required 60 votes necessary to move forward. The bill was voted down 49-50 with all but one Republican opposing the legislation. Had it moved forward with the February 2021 proposed version, as outlined in our blog, OFCCP would have been required to investigate employer compensation practices and other employment-related data (hiring, promotion and termination) by implementing a survey.

As of now, the only potential pay data collection requirement on the federal level may come from the EEOC as it continues its review of whether, and in what form, to collect pay data in the future. On the state level, California and Illinois both require pay data reporting.

OutSolve’s Take

Despite the failure of the proposed legislation to reach passage in the Senate, we are seeing continuing emphasis on pay equity in OFCCP compliance evaluations, as well as at the state level, e.g., the California Equal Pay Act and most recently, Illinois which will require employers to obtain an equal pay registration starting in 2024.

OFCCP’s current regulations do require that contractors evaluate their pay systems to identify and correct gender and/or race/ethnic inequities. Clients should be pro-active in evaluating their pay practices. OutSolve’s Pay Equity Analysis Services are available to assist you. If you’d like additional information on this or any other compliance services, reach out to us at  info@outsolve.com or by calling 888-414-2410.