Fair Pay Act of 2026

Bill Number

H.R. 8663

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Labor and Employment

Status

Introduced

Latest Action

2026-05-04: Referred to the House Committee on Education and Workforce.

Last Updated

2026-05-20T19:21:41Z

AI-Generated Summary

Purpose

The Fair Pay Act of 2026 (H.R. 8663) amends the Fair Labor Standards Act (FLSA) of 1938 to prohibit employers from paying lower wages to workers in jobs dominated by a particular sex, race, or national origin compared to equivalent jobs dominated by another group. It aims to eliminate wage gaps attributed to discrimination, based on findings of persistent disparities affecting women, people of color, families, and the economy.

Key Provisions

• Prohibition on Wage Discrimination (New FLSA §6(h)):
• Bans paying lower wages, or providing inferior terms/conditions of employment, for equivalent jobs (jobs with similar skills, effort, responsibility, and working conditions, even if titles differ) based on sex, race, or national origin between jobs "dominated" by different groups.
• Exceptions allowed for seniority systems, merit systems, production-based pay, or bona fide factors (e.g., education, training, experience) if job-related, business-justified, consistently applied, and not themselves discriminatory.
• Employers cannot reduce wages to comply; Equal Employment Opportunity Commission (EEOC) issues guidelines on "dominated" jobs (e.g., threshold like 80% one group).
• Anti-Retaliation (FLSA §15(a)(7)-(8)): Protects workers from discharge, discrimination, or interference for opposing violations, filing charges, testifying, inquiring about/discussing wages, or exercising rights.
• Enhanced Remedies (FLSA §16):
• Adds compensatory/punitive damages (punitive not against U.S. government); expert fees and class actions allowed.
• Secretary of Labor can seek same in enforcement actions.
• Recordkeeping and Reporting (FLSA §11(c)):
• Employers must keep records justifying wage decisions; larger employers (25+ employees initially, then 15+) submit annual EEOC reports on wages by job, sex, race, national origin (anonymous, no names).
• EEOC can publish aggregated data for research; public access with fees.
• EEOC Role: Studies, technical assistance, education on compliance; biennial reports to Congress.
• Applicability: Covers congressional/executive branch employees; effective 1 year after enactment.

Significant Changes to Existing Law

• Expands FLSA's Equal Pay Act provision (§6(d)), which only bans sex-based pay differences for equal work (substantially equal, not just equivalent), to include race and national origin and equivalent jobs.
• Shifts some burden of proof to employers for "bona fide factor" defenses (must prove job-related/business purpose; employee can rebut with less discriminatory alternatives).
• Adds wage discussion protections (beyond some state laws), punitive damages, class actions/expert fees under FLSA (previously limited), and mandatory EEOC reporting (new for pay equity).
• Updates exemptions and conforming laws for government workers.

Potential Impacts

• Government Agencies: Increases EEOC/DOL workload for guidelines, enforcement, reporting, research; biennial congressional reports.
• Citizens/Workers: Strengthens protections for women, racial/ethnic minorities (e.g., larger pay gaps noted for Black, Latina, Native women); may raise wages, reduce poverty (e.g., findings cite halved poverty for working single mothers), boost family stability/economy (e.g., $500B annual loss from gaps).
• Employers/Businesses: Higher compliance costs (records, reports for mid-sized+ firms); litigation risk from broader claims/damages; prohibits wage cuts, potentially increasing payroll.
• No direct international relations impacts.

Main Stakeholders Affected

• Employees: Especially women, people of color, mothers/single parents in segregated occupations.
• Employers: All covered by FLSA (interstate commerce), with reporting for 15+ employees.
• Labor Organizations: Prohibited from causing discrimination.
• Government: EEOC (guidelines, data, assistance), DOL (enforcement), Congress/executive branch (applies to staff).
• Public/Researchers: Access to anonymized wage data for studies.

Notable Legal, Constitutional, or Political Implications

• Legal: Broadens FLSA enforcement (violations treated as unpaid wages/overtime); allows class actions/punitive damages, potentially increasing lawsuits; EEOC regulations key for "dominated" jobs/factors (avoids fixed job lists).
• Constitutional: Aligns with Equal Protection Clause/anti-discrimination precedents; no apparent free speech/contract issues (wage discussion protected).
• Political: Builds on 1963 Equal Pay Act/Civil Rights Act; findings highlight economic costs of gaps, supporting equity goals without mandates beyond compliance.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Del. Norton, Eleanor Holmes [D-DC-At Large]

Recent Actions

• 2026-05-04: Referred to the House Committee on Education and Workforce.
• 2026-05-04: Introduced in House
• 2026-05-04: Sponsor introductory remarks on measure. (CR E412)
• 2026-05-04: Introduced in House

Bill Versions

• Fair Pay Act of 2026 — issued 2026-05-04 — PDF (19 pages)