Equal Pay Day is a day that symbolizes equal pay for both genders. It is the benchmark for how long into the next year a woman must work in order to earn as much money as a man earned during the previous year. This year, women did not catch up to the 2021 earnings of the average American man until March 15, 2022.
The Gender Wage Gap
Women earn approximately 82 cents for every dollar earned by a man, and earn less than men in nearly every industry, regardless of their level of education, according to data from the U.S. Department of Labor’s Bureau of Labor Statistics. This may be explained by various factors, including:
- caretaking responsibilities falling predominantly on women,
- the lack of paid family leave,
- inherent bias and discrimination, and
- traditionally female-dominated careers (such as secretaries, teachers, and nurses) earning lower wages than traditionally male-dominated professions.
What’s more is the sobering effect that the COVID-19 pandemic has had on gender equality in the workplace. According to U.S. Department of Labor, in February 2021 women participated in the workforce at the same rate as in 1987 – 55.8%.
How Governments Are Responding
In response to the gender wage gap problem, the federal government, states, and many localities have passed sex discrimination, equal pay and pay transparency laws.
At the federal level, the Equal Pay Act of 1963 (EPA), an amendment to the federal Fair Labor Standards Act (FLSA), requires employers to pay men and women in substantially equal jobs at the same workplace equal pay for equal work. Additionally, the Lilly Ledbetter Fair Pay Act of 2009 amended Title VII of the Civil Rights Act of 1964 by resetting the 180-day statute of limitations to file an equal pay lawsuit based on pay discrimination with each discriminatory paycheck.
On the state level, Connecticut law prohibits employers from requiring employees to remain silent about their own wages and those of other employees. Additionally, every state except Mississippi has passed some form of equal pay law.
At the local level, New York City enacted a law that will require employers to provide expected salary ranges for internal and external positions by May 15, 2022. In providing straight-forward data about what employees may expect with respect to wages and salary, governments are attempting to ensure that all employees, regardless of gender, know what to expect regarding pay. In permitting employees to discuss pay, salary transparency laws empower employees with the knowledge that may be used to advocate for equal opportunity.
How Can Employers Narrow the Gender Wage Gap?
- Offer Paid Family Leave
There is no way of avoiding the logical and factually supported conclusion that a major contributing factor to the pay gap is that women still do most of the heavy lifting when it comes to childcare. However, without leave to support these personal obligations, and unless or until childcare responsibilities are equally split between the sexes, women may remain one step behind men regarding pay. Employers can narrow this gap by providing paid family leave to all employees – regardless of gender. - Institute Pay Transparency
Transparency about pay increases the likelihood that similarly qualified individuals are paid on par with one another. Transparency means including pay or pay range on a job listing and being clear about what raises may look like at the start. - Implicit Bias Training
Implicit bias training will help managers understand how their preconceived notions about traditional gender roles may impact their decision -making and ultimately how they perceive employees. If employers provide implicit bias training, it may help organizations to identify biases that may contribute to unequal wages. - Conduct Pay Audits
Conducting an internal pay audit will allow employers to take a pulse on how their pay practices fare in terms of equal employment opportunities and equal wages. Employers may conduct this review by comparing the salaries of employees with similar job titles or positions. If there are differences in pay, employers should have a legitimate and documented business reason for the disparity. If there are not legitimate business reasons to support the pay gap, then employers may contemplate increasing pay to level the playing field.
Conclusion
Regularly review your pay practices for inequality, inherent bias, and pay discrimination by conducting mock audits and inherent bias training so managers know how to spot these issues.
Offer family leave to all employees, regardless of gender.
Maintain and encourage pay transparency.
Cultivate transparency surrounding pay.