Pay Equity

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Pay Equity

• Public Policy For Advocates Like You!

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What is the Gender Wage Gap?

• FTYR - Standard measure used by business,
  economists and policymakers comparing earnings
  for women and men employed full time and year
  round.
• Pay equity will be achieved when the ratio of
  FTYR womens pay to FTYR mens pay is 100. In
  1971, U.S. women were earning 59 of the rate for
  U.S. men. In 2009, the rate has improved to 78.

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Why is there a wage gap? 

• Part of the wage gap results from differences in
  education, experience or time in the workforce.
  But a significant portion cannot be explained by
  any of those factors it is attributable to
  discrimination.

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Federal Legislation That Addresses Gender
Discrimination

• Equal Pay Act - signed by Pres. Kennedy in1963,
  Public Law 88 - 63. Part of the Fair Labor
  Standards Act governing wages and hours in the
  workplace.
• Title VII of the Civil Rights Act - Title VII
  (seven) amended the Civil Rights Act of 1964.

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Equal Pay Act of 1963

• Protects men and women who perform substantially
  equal work in the same establishment from
  sex-based wage discrimination
• on jobs the performance of which requires equal
  skill, effort, and responsibility and which are
  performed under similar working conditions.

BPW President Dr. Minnie Miles (second from
right) at signing of Equal Pay Act
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Title VII Civil Rights Act

• Prohibits employment discrimination based on
  race, color, religion, sex, or national origin

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Lilly Ledbetter Fair Pay Act

• Reverses the Supreme Courts decision in
  Ledbetter v. Goodyear Tire Rubber Co. and
  ensures that individuals subjected to unlawful
  compensation discrimination are able to
  effectively assert their rights under the federal
  antidiscrimination laws.
• The House passed the bill Jan. 9, just days after
  convening the new session of Congress.
• The Senate approved it Jan. 22, 61-36, with all
  16 women senators, including 12 Democrats and 4
  Republicans, voting for it.
• President signed into law on Thursday January 29,
  2009!

Surrounded by members of Congress, President
Barack Obama signs the Lilly Ledbetter Bill with
Lilly Ledbetter, at center, behind Obama.
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Lilly Ledbetter Fair Pay Act(cont.)

• Arguments for Bill states that a violation
  occurs each time a person receives a paycheck
  resulting from a discriminatory compensation
  decision.
• Arguments against the bill would lead to an
  explosion of litigation against employers. Under
  the bill, it is possible that claims could be
  filed decades after an allegedly discriminatory
  act occurred. (New York Times,Jan. 5, 2009)

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Why Expand the Equal Pay Act ?

• Women still earn 77.8 of men's wages in 2007
  (pay-equity.org).
• Women get hurt first and worst during an economic
  downturn and are most in need of an equity
  stimulus
• Pay equity is good for business
• After 46 years, we know what is working and what
  is not.

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Paycheck Fairness Act (HR 12/S 182)

• 2009 - Passed House first week in session,
  awaiting action in Senate
• Sponsored by Rep. DeLauro (D-CT) and Sen. Clinton
  (D-NY)
• Allows prevailing plaintiffs to recover
  compensatory and punitive damages
• Improves collection of data for EEOC
• Prohibits employer retaliation when salary
  information is shared
• Employer must prove pay differentials caused by
  something other than sex and is related to job
  performance (ie. not negotiation skills, or past
  pay)

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Paycheck Fairness Act (cont.)

• Grant program for negotiation skills training for
  girls and women
• Mandates the Secretary to disseminate research
  about the elimination of pay disparities between
  men and women
• Creates an award to encourage proactive efforts
  to comply with the Act.
• Improves the collection and publication of
  information about compensation discrimination.

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Paycheck Fairness Act

• Arguments for PFA would strengthen current laws
  against wage discrimination and require the
  federal government to be more proactive in
  preventing and battling wage discrimination.
  (National Committee on Pay Equity)
• Legislation is needed to close loopholes in the
  law, block rollbacks in federal enforcement, and
  promote truly equal pay for equal work

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Paycheck Fairness Act

• Arguments against when determining if wage
  disparities are caused by factors other than
  sex.Guidelines would effectively preclude
  consideration of many of the factors that quite
  legitimately and necessarily drive salary
  decisions, including, most notably, marketplace
  factors. (Chamber of Commerce testimony against)

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Advocacy in the States

• Minnesota
• Maryland
• New Mexico

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Minnesota

• Equitable compensation relationships
• Statistical analysis used to spot patterns of
  paying female dominated class jobs less than male
  dominated class jobs of similar work values
  within one employer (public sector only)
• Wage gap is virtually eliminated.

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Maryland

• 2008 Law provides for the Commissioner of Labor
  and Industry to collect and study pay disparity
  issues.
• Public and private sector data to include gender,
  race, job classification and wages and other
  conditions of employment.

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New Mexico

• A new state task force will examine gender,
  ethnic and racial pay equity and job segregation
  in state government.
• The task force will develop a system for
  employers in the private sector to use to measure
  and remedy inequities. (New Mexico Business
  Weekly, Jan. 28, 2009)

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• Register for Policy and Action Day - Join Working
  Women Advocates from Around the Nation in
  Washington, D.C. on Tuesday, March 31st for
  BPW/USAs Policy and Action Day 2009.
• Cant Come to DC? Participate in the National
  Working Womens Day of Action by scheduling a
  meeting with your legislators at home or calling
  them on March 31st