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The Paycheck Fairness Act Vote Happens Today: So What Is It?
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There’s a situation that many if not all of us have been in, and it’s pretty embarrassing: that awkward moment when you realize that a colleague makes more than you do.
Upon discovering the disparity, there are usually a few things that race through the mind:
- Are they smarter than I am?
- Are they colluding with someone?
- Are they adding more value than I am?
Unfortunately for us, many a time the assumed answer is the last in this parade of litanies. We assume our colleagues are doing better than we are.
We’re often wrong.
The Unexplained Gap
Pay discrimination is real, and it seems to be a market failure that’s not fixing itself. The convergence of male and female wages that we saw in the 1980s slowed down significantly in the 1990s and has seemed to plateau to a gap that’s budged very little since (Blau, Kahn 2006). This “unexplained gap” has been the subject of much discussion, and now, finally, legislation to follow up the Equal Pay Act of 1963 and the Lilly Ledbetter Fair Pay Act of 2009. That’s the Paycheck Fairness Act.
What’s the bill say?
Basically, the Paycheck Fairness Act makes it harder for employers to prevent employees from discussing their wages amongst themselves. The idea is to make wages more transparent and hold companies accountable for discrepancies in pay between employees that have little distinguishing them other than gender.
Who’s backing it?
The biggest proponents you’ll hear about are President Barack Obama and Kirsten Gillibrand (D-NY).
Will the Paycheck Fairness Act actually reduce pay discrimination?
The process an employee must go through to put the Paycheck Fairness Act into practical use is pretty arduous, but the hope is that increased transparency will encourage compliance on the part of employers.
Thank you for breaking down the intent and components of the Paycheck Fairness Act for us, Elizabeth !
I agree Caroline! This article really clarifies the Paycheck Fairness Act for readers. Make sure to spread the word on Twitter and other social media engines as the Act is brought in front of Congress today!
There will be a Twitter Chat on this topic today from 1-2 #TwitterTownHall! Join L(L)!
What a great explanation of the multiple dimensions to the Act, highlighting the need to pass such an act now!
I think the notion of transparency in pay is hugely effective, for gender equality and, moreover, for effective organizations. When you lay it out on the table what people are paid in a company, accountability soars. Think about it - if everyone knows that the VP of Marketing gets paid half as much as the General Counsel, you have to make a case for why legal is a harder job, requires more hours/expertise, or brings in more money for the company. Open book accounting is one of the core principles of democratic workplaces, which I think is definitely the way of the future (see worldblu.com)!
It is so true, Leslie. Accountability and Transparency in relation to pay has the ability to create major progress for gender equality.
that's EST right?
Thanks for breaking this down El!! Made my request to senators last night. Have you all read this article? I'm interested to hear your opinions on their descriptions of this being all democratic strategy.http://www.washingtonpost.com/politics/paycheck-fairness-act-expected-to-fail/2012/06/04/gJQAPqvNEV_story.html?tid=sm_twitter_washingtonpost