Senate Holds Markup of the Paycheck Fairness Act, Healthy Families Act and PRO Act

On June 21, the Senate Health, Education, Labor, and Pensions (HELP) Committee held a markup of three labor bills championed by Democrats: the Paycheck Fairness Act (S. 728), the Healthy Families Act (S. 1664), and the Protecting the Right to Organize (PRO) Act (S. 567). The three bills passed out of the committee by a vote of 11-10 along party lines, demonstrating the challenge these bills will face to be passed into law.

Paycheck Fairness Act

The Paycheck Fairness Act aims to address wage discrimination on the basis of sex. More specifically, the bill limits an employer’s defense that a pay differential is based on a factor other than sex, enhances non-retaliation prohibitions, prohibits employee contracts or waivers banning them from disclosing wage information, and increases civil penalties for violations of equal-pay provisions.

Ranking Member Bill Cassidy (R-LA) introduced several amendments to the proposed Paycheck Fairness Act, including an amendment to substitute the text with the Wage Equity Act. ​​The Wage Equity Act would protect employers’ ability to use bona fide business-related factors other than sex to set workers’ compensation and allow workers to voluntarily disclose their prior salary histories when they choose to do so. The amendment was ultimately defeated by a vote of 9-12, with Sen. Rand Paul (R-KY) joining Democrats in voting against the amendment.

Healthy Families Act

The Healthy Families Act permits employees of businesses with 15 or more workers to accrue up to seven job-protected paid sick days each year to recover from an illness and provide care to a sick family member, among other health-related activities. For employers with 15 or fewer employees, the bill would allow employees to earn up to seven job-protected unpaid sick days each year to be used for the same purposes. Under the bill, workers would accrue one hour of sick leave for every 30 hours worked, with a cap of 56 hours that may be raised by the employer.

Cassidy offered two amendments to the bill that would exempt employers from the requirements of the bill if they already offer paid sick leave that is at least as comprehensive as the seven-day requirement or if they are religious employers denying sick leave taken for reasons that violate their religious beliefs. Both amendments were struck down by Democrats.

PRO Act

The PRO Act is a massive labor reform bill designed to increase union density. The bill includes several provisions that would overhaul existing labor laws — including the National Labor Relations Act (NLRA), the Taft-Hartley Act, and the Labor-Management Reporting and Disclosure Act — and may impose burdens on both employers and employees. Such provisions include:

• codifying the National Labor Relation Board (NLRB)’s Browning-Ferris Industries joint-employer standard;
• imposing the “ABC test” into the NLRA for classifying employees, making it more difficult for workers to operate as independent contractors;
• preempting state right-to-work laws that prevent forced unionization;
• prohibiting arbitration agreements in employment contracts;
• revoking attorney-client confidentiality for employers; and
• facilitating secondary boycotts by barring claims against unions that conduct them.

The PRO Act has been strongly criticized by congressional Republicans over the past several congressional sessions, and committee Republicans offered 35 amendments to modify the current text of the PRO Act. All 35 amendments were ultimately defeated when brought to a vote.

Looking Ahead

Despite the passage of these bills through the Senate HELP Committee, they are unlikely to be signed into law. Due to their partisan support, the bills are unlikely to garner enough support to bypass the 60-vote filibuster on the Senate floor and to be considered in the Republican-controlled House.

CUPA-HR will keep members apprised of future developments on these bills.