Federal Employee Fairness Act of 1997

Federal Employee Fairness Act of 1997 - Amends the Civil Rights Act of 1964 to permit a Federal employee filing a discrimination complaint to file it with the Equal Employment Opportunity Commission (EEOC). Makes it an unlawful employment practice if the employee demonstrates that the filing of a complaint contributed to an adverse personnel action against such employee. Requires that any such complaint filed with an agency other than the EEOC be transmitted to the EEOC. Sets forth procedures for filing and processing such complaints. Permits a Federal employee to file a complaint up to 180 days following an alleged discrimination. Provides for a complaint conciliation period.

Amends the Age Discrimination in Employment Act of 1967 to permit the filing of a complaint with the EEOC in accordance with the amendments made to the Civil Rights Act of 1964 by this Act.

Amends the Rehabilitation Act of 1973 to apply its remedies and attorney's fee provisions to complaints by individuals with disabilities with respect to employment in the Library of Congress.

Amends title 5 of the United States Code, concerning Government organization and employees, to permit an employee, under a negotiated grievance procedure, to raise matters dealing with actions involving discrimination.

Directs the EEOC to publish proposed guidelines not later than 180 days after enactment of this Act and allow not less than 30 days for public comment. Requires the guidelines to provide standards for an alternative dispute resolution process.

Requires the EEOC to issue rules establishing a program to foster voluntary settlement of claims.

Expresses the sense of the Congress that amounts appropriated to the EEOC should be increased to enable it to carry out its additional responsibility.

Expresses the sense of the Congress that payments of relief awarded for Federal employment discrimination claims should not be made out of funds appropriated to an agency for salaries and expenses.