Fair Pay Act of 2026

The Fair Pay Act of 2026 amends the Fair Labor Standards Act to prohibit employers from paying different wages to employees performing equivalent jobs based on sex, race, or national origin. This law specifically targets pay gaps that arise when jobs are segregated by these characteristics, requiring that roles with similar skills, effort, responsibility, and working conditions receive equal pay regardless of the employee's demographic group. While the bill allows for wage differences based on seniority, merit, production quantity, or bona fide factors like education and experience, it places a heavy burden on employers to prove these factors are job-related and not a result of discrimination. To enforce these rules, the legislation mandates that employers maintain detailed records of their wage-setting methods and submit annual reports to the Equal Employment Opportunity Commission, while also expanding legal remedies to include compensatory and punitive damages for violations.