Congressional Digest

    Equal Pay Protections

May 05, 2015
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The Equal Pay Act of 1964 made it illegal to pay employees different wages based on their sex. In addition, the National Labor Relations Act says that employers cannot prevent employees from discussing wages and other issues. And in 2009, Congress passed, and President Obama signed, the Lilly Ledbetter Fair Pay Act, which amends the 1964 Civil Rights Act to state that the 180-day statute of limitations for filing an equal pay lawsuit resets with each new paycheck affected by that discriminatory action.

Nevertheless, the gap between men’s and women’s wages has persisted. Although the wage gap varies by State and race, women are nationally estimated to earn 78 cents for every dollar earned by a man. (That figure was about 59 cents when the Equal Pay Act became law.) As a result, proposals have been put forth to reaffirm and better enforce laws that are already on the books.

The Senate budget resolution passed in March 2015 included an amendment clarifying that employees should not be penalized for discussing wages. During the same debate, senators rejected a proposal offered by Senator Barbara Mikulski (MD-D) requiring stronger penalties for unequal pay.

On March 26, Senator Deb Fischer (NE-R) introduced S. 875, to make it illegal for employers to retaliate against employees who discuss or ask about comparative compensation. The bill would also prohibit pay discrimination unless the differential could be justified by seniority, merit, or some other factor.

One year ago, President Obama took two Executive actions aimed at narrowing the wage gap:

  • An Executive order prohibiting Federal contractors from retaliating against workers who discuss their salaries with one another.
  • A memorandum requesting new rules to require Federal contractors to submit data on employee compensation by race and gender.

The umbrella bill currently supported by equal pay advocates is S. 862, the Paycheck Fairness Act, sponsored by Senator Mikulski. The measure is designed to help those who believe that they have experienced pay discrimination by making wages more transparent, requiring that employers prove that wage discrepancies are tied to legitimate business qualifications, and prohibiting companies from taking retaliatory action against employees who raise concerns. 
Opponents of the bill argue that the statistic that women earn 78 cents for every dollar a man earns is misleading and misapplied because it is based on the wrong comparisons. They point to studies showing that when the job itself, experience, and hours of work are taken into account, women make about the same amount as men. They also say that there are already sufficient laws under which women can seek justice for wage discrimination.

For more background, see the May 2014 issue of Congressional Digest on “Women’s Pay Equity.”

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