Fair Pay Act of 2026

Summary#

This bill amends the Fair Labor Standards Act to ban pay differences between jobs that are "equivalent" when those jobs are dominated by different sexes, races, or national origins within the same establishment. It adds a new subsection (6(h)) that makes it unlawful for an employer to pay a lower wage in a job dominated by one protected group than in an equivalent job dominated by a different protected group. Allowed exceptions include seniority systems, merit systems, piece-rate systems, and bona fide factors such as education, training, or experience if the employer shows the factor is job-related or furthers a legitimate business purpose and was reasonably applied. The Equal Employment Opportunity Commission (EEOC) must issue guidance on when a job is "dominated" by a particular group. Employers may not lower existing employees' wages to comply. The bill expands anti-retaliation protections (including for discussing wages) and adds remedies: employers found liable can face compensatory and punitive damages, and plaintiffs can recover expert fees and bring class actions. Employers must keep detailed wage records and larger employers must file reports with the EEOC disclosing pay by job and the sex, race, and national origin of employees in each pay group. The EEOC is given authority to publish data, inspect reports, issue regulations, and run research, education, and technical assistance programs. The bill takes effect one year after enactment and makes related changes for congressional and executive branch employees.

What it means for you#

  • If you are an employee: you cannot be paid less in an equivalent job because of your sex, race, or national origin. You have stronger protection to discuss wages and to challenge pay differences. You may be able to recover compensatory or punitive damages if a court finds a violation.
  • If you are an employer: you must keep records that show how pay is set and may need to submit pay reports to the EEOC if your workforce meets the size thresholds. You must follow EEOC guidance on job domination and may not cut wages to meet the law. Valid pay differences must fit listed exceptions and be applied reasonably.
  • If you are represented by a labor organization: unions are prohibited from causing employers to discriminate in pay under the new rules.

Expenses#

No publicly available information. The bill does require actions that could create costs, but it does not include cost estimates. Required items in the bill that could create costs include: recordkeeping of wage-setting methods; periodic employer reports to the EEOC for employers above the size thresholds; EEOC rulemaking, inspections, research, education, and publication activities; and possible compensatory and punitive damages, expert fees, and class action litigation costs when violations are found.

Proponents' View#

The bill's findings state that wage gaps exist by sex, race, and national origin and that discrimination and occupational segregation keep pay unequal. The bill says existing laws have not fully removed pay discrimination and that pay equity would raise wages for many workers, reduce poverty, and improve economic output. Supporters in the bill text argue that stronger rules, recordkeeping, reporting, and EEOC guidance are needed to end unjustified wage differences.

Opponents' View#

No publicly available information.