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9th Circuit Revists Ruling on Unequal Pay in Some Situations

Wednesday, September 20th, 2017

In a conundrum with profound implications, a federal appeals court will revisit whether – in some circumstances — men can be paid more than women for the same job.

On the surface, that conflicts with the Equal Pay Act. But a three-judge panel of the 9th Circuit ruled in April that salary history could justify unequal pay. In essence, the panel determined the male hires in question were paid more because of their last paycheck and that their gender was a coincidence.

The EEOC appealed, saying that the ruling perpetuates the gender gap and conflicts with precedent in other circuits. The full 9th U.S. Circuit Court of Appeals has agreed to review the case, with oral arguments set for December.

She was hired at less pay than all the men in her job

Aileen Rizo, a math consultant, took a job with the public schools in Fresno County, California. Her $62,000 salary was a nice bump from her previous teaching job. But she soon learned that a male colleague was hired at $79,000 for the same job. Further investigation revealed that all her male colleagues earned more.

When human resources did not act on her complaint, Rizo sued for employment discrimination. The school district’s rationale was that the men’s higher pay was based on their salary history. Per county policy, starting pay was determined by adding 5 percent to the hiree’s preceding salary.

The Equal Pay Act allows unequal pay for men and women doing the same work if the disparity is based on factors other than gender, such as seniority. In ruling against Rizo, the appeals court panel cited a prior 9th Circuit decision that salary history can be a factor if the practice (a) effectuates some business policy and (b) is implemented in a reasonable way.

Salary history exception may perpetuate the wage gap

The Equal Employment Opportunity Commission (EEOC) strongly disagrees and appealed the panel’s ruling. Before the 9th Circuit took up the review, the panel had remanded the case to the trial court to explore the “business reason” for the Fresno County salary policies.

The EEOC contends that the ruling enables the pay gap’s vicious cycle. If men are routinely paid more than women, their salary history will dictate they be paid more at the next job, and so on. The American Association of University Women, which studies the gender pay gap, says the wage gap is partially rooted in outdated concepts of men as family providers. For example, AAUW statistics reveal that women who are moms earn less than their female peers (the “Motherhood Penalty”), but men who are dads are paid more than average (the “Fatherhood Bonus”). This bias can be perpetuated in salary history and parental leave policies.

The AAUW says that women earn, on average, 80 percent of their male counterparts. The wage gap varies, but it is true across all industries and all levels of employment, including public sector employees. There is already a pay gap when females enter the workforce in their teens. While women tend to top out in salary in their 40s, male salaries continue to rise into their 50s and 60s.

On the other hand, many economists say it’s a myth that women are paid 80 cents on the dollar compared to men. Rather than a wage gap, they say, it’s an earnings gap. Men gravitate toward – or have more access to – higher-paying jobs. Some moms drop out of the workforce or scale back. Et cetera. Without settling the broader pay gap dispute, the 9th Circuit case is in fact about unequal pay for equal work.

This blog was originally published by Passman and Kaplan, P.C. on September 12, 2017. Reprinted with permission. 

About the Authors: Founded in 1990 by Edward H. Passman and Joseph V. Kaplan, Passman & Kaplan, P.C., Attorneys at Law, is focused on protecting the rights of federal employees and promoting workplace fairness.  The attorneys of Passman & Kaplan (Edward H. Passman, Joseph V. Kaplan, Adria S. Zeldin, Andrew J. Perlmutter, Johnathan P. Lloyd and Erik D. Snyder) represent federal employees before the Equal Employment Opportunity Commission (EEOC), the Merit Systems Protection Board (MSPB), the Office of Special Counsel (OSC), the Office of Personnel Management (OPM) and other federal administrative agencies, and also represent employees in U.S. District and Appeals Courts.

Trump blocks Obama effort to combat pay discrimination

Thursday, August 31st, 2017

Former President Obama intended to fight pay discrimination with a rule requiring businesses to track how much they pay different groups of workers. You know the next part, right? Of course you do. Donald Trump is blocking the rule from going into effect as scheduled next spring because it’s just too hard for businesses to report how much they pay their workers.

“It’s enormously burdensome,” said Neomi Rao, administrator of the Office of Information and Regulatory Affairs, which analyzes the cost of federal rules and regulations. “We don’t believe it would actually help us gather information about wage and employment discrimination.”

Which part of that do you think is more important—that it’s burdensome or that they don’t believe it would help gather information? Or the unstated third reason that Donald Trump and his underlings don’t want to hold businesses accountable for discrimination anyway. This burden, by the way, amounts to putting extra information on a form that businesses already fill out. That information about how much women vs. men are paid, or workers of color vs. white workers seems like it would be helpful to uncovering discrimination. The Obama administration certainly thought so:

“We’d learn about a pay-discrimination problem because someone saw a piece of paper left on a copy machine or someone was complaining about their salary to co-workers,” leading others to realize they were being underpaid, said Jenny Yang, who was chairwoman of the EEOC when the rules were drafted, at NYU School of Law’s Annual Conference on Labor in June.

“Having pay data in summary form will also help us identify patterns that may warrant further investigation,” Ms. Yang said.

Self-proclaimed equal pay champion Ivanka Trump is right on board with the messaging against this effort to promote equal pay, by the way.

This blog was originally published at DailyKos Labor on August 30, 2017. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

Ivanka Trump supports her father’s decision to stop monitoring the wage gap

Wednesday, August 30th, 2017

Despite her supposed support for equal pay, Ivanka Trump backed a recent White House decision to end an Obama administration rule that would have required businesses to monitor the salaries of employees of different genders, races, and ethnicities in an effort to prevent employment discrimination.

Ivanka said in a statement that the policy, which would have taken effect this spring, would “not yield the intended results.” She didn’t offer any alternatives to replace the policy or explain why monitoring employees’ salaries would not help close wage gaps.

Ivanka has made a brand out of praising women who work, selling herself as an advocate for women’s rights.In April, Ivanka praised similar legislation passed in Germany requiring companies with 200 or more workers to document pay gaps between employees. She even added that the United States should follow Germany’s example.

“I know that Chancellor Merkel, just this past March, you passed an equal pay legislation to promote transparency and to try to finally narrow that gender pay gap,” she said. “And that’s something we should all be looking at.”

The Obama-era rule would have required companies with 100 or more workers to collect and submit data on employee wages to the Equal Employment Opportunity Commission. Neomi Rao, administrator of the Office of Information and Regulatory Affairs, told The Wall Street Journal that the policy is “enormously burdensome…We don’t believe it would actually help us gather information about wage and employment discrimination.”

The recent move to end the employment discrimination rule is only the latest in a series of failures by Ivanka to stand up for what she claims to be right.

Ivanka — an official White House advisor — has long been regarded as a potential moderating force within the Trump administration. But that image is carefully crafted, through a series of anonymous anecdotes to the media and sound bites that don’t actually fall in line with her father’s policies.

When Trump began the process of rolling back Obama-era clean water regulations just one month into his presidency, Ivanka remained silent. Ivanka also reportedly opposed the United States withdrawing from the Paris Climate Agreement, but she failed to stop her father from backing out of the deal. In June, in honor of Pride Month, she tweeted that she was “proud to support my LGBTQ friends and the LGBTQ Americans who have made immense contributions to our society and economy.” She then stayed silent when her father announced he would ban transgender Americans from serving in the military. (She also hasn’t said anything about the administration’s rollback of protections for transgender students.)

In her recent book, Women Who Work, Ivanka repeatedly touts her lifelong mission as, “Inspiring and empowering women who work — at all aspects of their lives.” But she remained silent on the shortcomings of her father’s paid family leave plan, which would offer six weeks of paid maternity leave to mothers, leaving out fathers and adoptive parents and potentially creating career obstacles for the working women she claims to support.

Wage discrimination in the United States is a serious problem. While the national gender pay gap has decreased since 1980, it still stands at a whopping 17 percent, with women making 83 percent of what men earn. The racial pay gap lags closely behind. In 2015, black workers earned 75 percent as much as white workers, according to Pew Research. The racial disparity is worse for women, who also fall behind men within their own racial or ethnic group.

Inside the White House, there is a surging pay gap, the highest of any White House since 2003, according to the Washington Post. At 37 percent, the White House pay gap is more than double the national gender gap.

This blog was originally published at ThinkProgress on August 30, 2017. Reprinted with permission. 

About the Author: Elham Khatami is an associate editor at ThinkProgress. Previously, she worked as a grassroots organizer within the Iranian-American community. She also served as research manager, editor, and reporter during her five-year career at CQ Roll Call. Elham earned her Master of Arts in Global Communication at George Washington University’s Elliott School of International Affairs and her bachelor’s degree in writing and political science at the University of Pittsburgh.

Black Women's Equal Pay Day shows how far from equality we are and how slow progress is

Tuesday, August 1st, 2017

July 31 is Black Women’s Equal Pay Day. That means that this is the day in 2017 when black women have finally caught up with what white men were paid in 2016. Thanks, wage gap! While we often hear the (accurate as far as it goes) statistic that women are paid 80 cents on the dollar compared with white men, the gap gets a lot worse when you break it out by race, and black women are paid just 63 cents on the white man’s dollar.

Here are a few more facts from the National Women’s Law Center. Education doesn’t make it go away:

  • Pursuing higher education does little close to the wage gap. Black women with a bachelor’s degree are typically paid $46,694—just under what white, non-Hispanic men with only a high school degree are paid ($46,729).
  • Black women have to earn a Master’s degree to make slightly more ($56,072) than white, non-Hispanic men with just an Associate’s degree ($54,620).

High wage jobs, low wage jobs … the gap persists.

  • Among workers in low wage jobs, Black women make just 60 cents for every dollar paid to white, non-Hispanic men. Black women who work full time, year round in these occupations are typically paid about $21,700 annually, compared to the $36,000 typically paid to white, non-Hispanic men in these occupations. This gap translates to a loss of $14,300 each year to the wage gap—more than enough to pay for an entire year’s worth of rent or more than a year and a half of childcare costs.
  • Among workers in high wage occupations—such as lawyers, engineers, and physicians or surgeons—Black women are paid 64 cents for every dollar paid to white, non-Hispanic men in the same occupations. Black women who work full time, year round in these occupations are typically paid about $70,000, compared to the $110,000 typically paid to white, non-Hispanic men in these same jobs. This amounts to a staggering annual loss of $40,000 each year, or $1.6 million dollars over a 40-year career.

Over 48 years, the entire time for which data is available, the situation has only improved by 20 cents, from black women making 43 cents for every dollar a white man made to making 63 cents in 2015, and “In Louisiana, the worst state for Black women’s wage equality, Black women typically are paid slightly less than half of what white, non-Hispanic men are paid.”

 This blog was originally published at DailyKos on July 31, 2017. Reprinted with permission.
About the Author: Laura Clawson is labor editor at DailyKos. 

Together We Can Make Pay Equity a Reality for All Working Women

Tuesday, June 13th, 2017

June 10th is the 54th anniversary of the passage of the Equal Pay Act, the 1963 law that prohibits employers from paying men and women different wages for the same work solely based on sex. The Equal Pay Act’s passage is an important example of the labor movement’s long history of partnering with progressive women’s organizations to advocate for equal pay for women. Indeed, Esther Peterson—one of the labor movement’s greatest sheroes—was instrumental in the enactment of this landmark legislation.

Pay equity and transparency are bread and butter issues for working women; when they come together to negotiate collectively for fair wages and important benefits, like access to health insurance and paid leave, they can better support their families. (Indeed, women in unions experience a smaller wage gap than women without a union voice).

 Since the passage of the EPA, the gender wage gap has narrowed, but it persists. Women overall typically are paid 80 cents for every dollar paid to their male counterparts, and that number has barely changed in the past 10 years. And the gap is even larger when you compare the earnings of women of color to white men.

 Clearly, we still have much to do to ensure pay equity, and there’s been some progress, thanks to tireless working women and their allies across the country. For instance, in the past two years, more than half the states have introduced or passed their own remedies to increase pay transparency, strengthen employer accountability and empower working people to take action against pay discrimination. But stronger protection from pay discrimination shouldn’t depend on where you happen to live or where you work. Working women deserve a national solution.

 That’s why the AFL-CIO, the National Women’s Law Center and countless other organizations support the Paycheck Fairness Act, part of a comprehensive women’s economic agenda. The PFA would strengthen the EPA by: protecting employees from retaliation for discussing pay; limiting the ability of employers to claim pay differences are based on “factors other than sex”; prohibiting employers from relying on a prospective employee’s wage history in determining compensation; strengthening individual and collective remedies against employers who discriminate; and increasing the data collection and enforcement capacity of key federal agencies.

 Let’s not forget that raising the federal minimum wage also would boost women’s earnings in a big way. A driving factor in the gender wage gap is women’s overwhelming majority representation (two-thirds of workers) in minimum wage jobs, including those who pay the lower-tipped minimum wage. Legislation like the Raise the Wage Act would give women the well-deserved raise they’ve earned.

 We need strong policy solutions like the Paycheck Fairness Act and the Raise the Wage Act to help close the gender wage gap. Working women and the families who depend on them can’t afford to wait another 54 years.

This blog was originally published at AFLCIO.org on June 10, 2017. Reprinted with permission.

About the Authors: Fatima Goss Graves is the senior vice president for program and president-elect at the National Women’s Law Center. In her current role, she leads the center’s broad agenda to eliminate barriers in employment, education, health care and reproductive rights and lift women and families out of poverty. Prior to joining the center,, she worked in private practice and clerked for the Honorable Diane P. Wood on the 7th U.S. Circuit Court of Appeals. Liz Shuler is secretary-treasurer of the AFL-CIO. The second-highest position in the labor movement, Shuler serves as the chief financial officer of the federation and oversees operations. Shuler is the first woman elected as the federation’s secretary-treasurer, holding office since 2009.

Still Fighting for Equal Pay

Tuesday, April 4th, 2017

Today is Equal Pay Day. We are 100 days into 2017, and today some women have finally reached the point where their earnings match their male counterparts’ 2016 earnings. We can’t forget that black and Latina women have to work even more until they reach pay parity.

While it’s shameful that women are still fighting to achieve equal pay, there are steps we can take to close the gap. The best way to close the pay gap is to form a union and bargain for a better life that includes equal pay. Through union contracts, women in their unions have closed the gap and received higher wages. In fact, union women earn $231 more a week than women who don’t have a union voice.

Wage disparities have long- and short-term negative effects. It contributes to the cycle of poverty and adds another barrier to being able to take care of our families, pay off debt, pay for child care and so much more.

Together, we can make equal pay for all women a reality.

This blog was originally posted on aflcio.org on April 4, 2017. Reprinted with permission.

Liz Shuler was elected AFL-CIO secretary-treasurer in September 2009, the youngest person ever to become an officer of the AFL-CIO. Shuler previously was the highest-ranking woman in the Electrical Workers (IBEW) union, serving as the top assistant to the IBEW president since 2004. In 1993, she joined IBEW Local 125 in Portland, Ore., where she worked as an organizer and state legislative and political director. In 1998, she was part of the IBEW’s international staff in Washington, D.C., as a legislative and political representative.

 

U.S. women reach deal in fair pay fight and will play in hockey championship

Thursday, March 30th, 2017

The U.S. women’s national hockey team has triumphed before the world championships even begin. The women had said they would not play in those world championships—after winning the event six of the last eight times it was played—unless USA Hockey stepped up its support of women in the sport and moved toward fair pay. Now, team members and USA Hockey have announced a deal just in time for the championships:

USA Hockey, the sport’s American federation, and the U.S. women’s team announced in a joint press release that they had reached an agreement “that will result in groundbreaking support for the U.S. Women’s National Team program over the course of the next four years.” […]

The two sides agreed to keep financial terms of the deal private. But the deal includes the formation of a new advisory group made up of current and former players that will “assist USA Hockey in efforts to advance girls’ and women’s hockey,” the release said.

“Our sport is the big winner today,” said Meghan Duggan, the team’s captain. “We stood up for what we thought was right and USA Hockey’s leadership listened. In the end, both sides came together.”

USA Hockey had gone looking for scabs, but women’s hockey players across the country had refused to bite, and NHL players were reportedly ready to stand with the women.

This article originally appeared at DailyKOS.com on March 29, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

The gender wage gap hasn’t budged in 9 years

Monday, September 19th, 2016

Bryce CovertThe average woman who had a full-time, year-round job in 2015 made just 80 percent of what a man did, according to the latest data from the Census Bureau. That’s up from last year’s 79 percent, but the increase is not statistically significant. The wage gap hasn’t closed significantly since 2007.

In 2015, men made $51,212 at the median, compared to $40,742 for women, a $10,470 difference. Both experienced an increase in income—1.5 percent for men and 2.7 percent for women—the first significant raise since 2009.

Census Bureau

Census Bureau

There are a number of factors that go into the gender wage gap. About 20 percent of it is due to the fact that women often end up in jobs and industries that pay less. Occupations with large numbers of women pay about 83 percent as those with large numbers of men. It’s not just that women choose to be in lower paid work; when a large number of women start to enter a job that was previously held by men, the pay drops.

Another portion of the gap can be explained by the fact that women tend to interrupt their careers or cut back on their hours. They are much more likely than men to do this to care for family members, work that still falls mostly to them. Some may have little choice given how few supports, like paid family leave and affordable child care, the country offers them.

AP Photo/Jessica Hill

AP Photo/Jessica Hill

But there is a sizable percentage of the gap between women’s and men’s earnings that can’t be explained by various factors—in one comprehensive study, about half of it. Women make less than men in every industry and in virtually every occupation. Even women with the exact same jobs as men earn less than them.

Education can’t close the gap, as female college graduates make less in their first jobs than male ones even when they have the same grades, majors, and other credentials, and women make less than men at every educational level.

There is evidence, however, that women and their work are justundervalued.

This article was originally posted at Thinkprogress.org on September 13, 2016. Reprinted with permission.

Bryce Covert  is the Economic Policy Editor for ThinkProgress. Her writing has appeared in the New York Times, The New York Daily News, New York Magazine, Slate, The New Republic, and others. She has appeared on ABC, CBS, MSNBC, and other outlets.

Congresswoman Will Introduce First-Ever Bill To Get Rid Of Salary Histories

Thursday, September 1st, 2016

Bryce CovertWhen Congress gets back from recess, one of the first items on Rep. Eleanor Holmes Norton’s (D-DC) agenda will be salary histories.

She, along with co-sponsors Reps. Rosa DeLauro (D-CT) and Jerrold Nadler (D-NY), will introduce the first-ever bill to ban employers from asking about applicants’ prior pay before making an offer.

The bill is aimed at closing the gender wage gap, which means the average woman working full-time, year round makes 79 percent of what a man does and women of color make even less.

Norton has a long history of working to end the wage gap, from her time enforcing equal pay laws while chairing the Equal Employment Opportunity Office to introducing and sponsoring equal pay legislation in Congress. Yet even she is somewhat new to the issue of salary histories and was inspired by a recent law that passed in Massachusetts banning their use.

“It was not instinctive to me to understand that asking an applicant for prior history could have a lifelong discriminatory affect,” she told ThinkProgress. But, she added, “All you need to do is think five seconds about it and you understand it.”

The issue is that women and people of color start out being paid less, a disparity that only compounds if their next job’s pay is based off of their prior pay. Women make less than men in their first jobs, a gap that is actually increasing, and then continue to earn less in virtually every occupation and even if they get more education.

Rep. Eleanor Holmes Norton (D-DC) at the DNC. CREDIT: AP Photo/J. Scott Applewhite

Rep. Eleanor Holmes Norton (D-DC) at the DNC. CREDIT: AP Photo/J. Scott Applewhite

“If this disparity can begin from the moment you go to your first job, and it follows you throughout your career, it will never be rectified and the wage gap itself will never be rectified,” Norton said. “It is a hidden form of discrimination that many employers may think is reasonable to ask and may not understand the discriminatory effect.”

There is always room, of course, for employers to ask questions of applicants to determine who to hire and who will be a good fit. But Norton doesn’t think this one lives up to that scrutiny. “What somebody earned before does not go to merit… It doesn’t tell you how that employee, for example, should be judged relative to other employees,” she said. She noted it may even be hampering men, who would also be protected under the new bill.

The idea of eliminating salary histories has quickly gained prominence. Massachusetts passed its bill in the beginning of August, and a few weeks later a similar bill was introduced in the New York City council. Now it’s poised for federal attention.

For Norton, it’s a matter of halting a pattern that’s keeping pay disparities in place. “People of color and women never break the chain of discrimination, because it’s built in,” she said.

This article was originally posted at Thinkprogress.org on August 30, 2016. Reprinted with permission.

Bryce Covert  is the Economic Policy Editor for ThinkProgress. Her writing has appeared in the New York Times, The New York Daily News, New York Magazine, Slate, The New Republic, and others. She has appeared on ABC, CBS, MSNBC, and other outlets.

We’ve Finally Reached 2016 African American Women’s Equal Pay Day

Friday, August 26th, 2016

 

elizabeth-kristen

Today we commemorate “African American Women’s Equal Pay Day,” the day in the year when African American women’s wages finally catch up to what men earned last year.  It is important to note that African American Women’s Equal Pay Day comes nearly four months after “Women’s Equal Pay Day,”which included wages of women of all races, and was marked on April 12th of this year.  The four-month lag signifies the nearly 20-cent wider wage gap African American women face when compared to women of all races.  So, while the average wage gap for all women in the United States is 79 cents for every dollar a man makes, African American women’s wages are at just 60.5 cents on the dollar.  African American lesbian couples, who doubly experience the high wage gap (plus discrimination based on sexual orientation), have triple the poverty rate of white lesbian couples.

Eliminating the racial gender wage gap would provide concrete economic benefits to African American women. To give a concrete example, women could buy nearly three years of food for their families or pay rent for nearly two years with those additional wages.  Given that so many African American women and their families are struggling to make ends meet, receiving equal pay would make a life-changing difference.

Harriet Tubman portrait

Last year, California passed one of the strongest equal pay laws in the country, the California Fair Pay Act of 2015, which strengthened protection for workers who discuss or ask about their wages and the wages of others.  It also protects women who challenge gender based pay differences in jobs that are “substantially similar” to theirs.  For example, a female housekeeper who is being paid less than a male janitor could remedy the pay difference since the jobs are so similar and wage inequality would likely be unjustified.  The California Labor Commissioner is charged with enforcing the California Fair Pay Act.

This year, California State Senator Hall has introduced SB 1063, the Wage Equality Act of 2016, which would add race and ethnicity to California’s strong Fair Pay Act.  Under SB 1063, California employers would be prohibited from paying workers less for substantially similar work based on race or ethnicity.  An African American woman thus might have a claim that she is being paid less based not only on sex, but on race as well.  With SB 1063, she would be able to more effectively address racial wage inequality.

Certain cities already are specifically addressing wage inequality by sex, race and ethnicity.  For example, in San Francisco, city contractors will have to disclose data on what they pay their workers, broken down by both sex and race, to the City.  California state contractors may also be required to submit similar pay data reports under another bill that should reach the governor’s desk for approval.  And the federal Equal Employment Opportunity Commission intends to revise its Employer Information Report (EEO-1) data collection to include salary information based on ethnicity, race, and sex.

Our current laws against sex and race discrimination have proven inadequate to end race- and sex-based unequal pay since the pay gap remains depressingly large more than fifty years after passage of federal civil rights laws in these areas. Pay disclosure rules are an important step towards closing the pay gap for women and women of color in particular. They force employers to self-audit and identify unjustified pay disparities.  In the event they do not correct the disparities, disclosure enable government agencies to conduct targeted enforcement of equal pay laws.

It will reportedly be more than a decade before the first African American woman (Harriet Tubman) graces the face of U.S. currency.  With these new laws there is hope that before the Tubmans arrive, African American women will already be receiving the full value of those $20 bills and not just 60 percent.

The Legal Aid Society-Employment Law Center together with the California Women’s Law Center and Equal Rights Advocates make up the California Fair Pay Collaborative dedicated to engaging and informing Californians about fair pay issues.

This article was originally posted at CelaVoice.org on August 23, 2016. Reprinted with permission.

Elizabeth Kristen is the Director of the Gender Equity & LGBT Rights Program and a senior staff attorney at Legal Aid Society – Employment Law Center.

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