Poor Lilly Ledbetter must be tearing her hair out. She is the woman, you may recall, who “sought justice because equal pay for equal work is an American value” some years ago when she learned that she was earning significantly less money than men doing the same managerial work in the Alabama tire plant where she worked for nearly 20 years.
Her legal fight ultimately led her to the Supreme Court in 2007, where in a 5-4 decision, the Court “stood on the side of those who shortchanged my pay, my overtime and my retirement just because I [was] a woman,” she lamented, after the Court ruled that she didn’t report the inequity within the required six months, even though she didn’t discover the discrepancy for nearly two decades. “In the end,” she said, “I didn’t get a dime of the money I was shortchanged.”
What she did get, ultimately, was the Lilly Ledbetter Fair Pay Act of 2009, signed into law by President Barack Obama. The law allowed individuals who faced pay discrimination to seek rectification under federal anti-discrimination laws. It also clarified that wage discrimination based on age, religion, national origin, race, sex, and disability would “accrue” every time an employee received a paycheck deemed to be discriminatory. It was the first bill President Obama signed and it became one of several federal laws designed to protect worker's rights.
Prior to that, in 1963, the Equal Paycheck Act, signed by President John F. Kennedy, made it illegal for employers to pay women less for performing the same jobs as their male counterparts. However, it had several loopholes that needed to be addressed. Then Title VII of the Civil Rights Act of 1964 prohibited employment discrimination on the basis of sex.
The Ledbetter Fair Pay Act of 2009 added to those prior acts by reversing the Supreme Court decision that upheld the short statute of limitations for wage discrimination claims that had killed Lilly Ledbetter’s case.
In 2014 the Paycheck Fairness Act was first introduced in the Senate by former Senator Barbara Mikulski (D-MD), essentially as an amendment to the Fair Labor Standards Act of 1938, but it failed to be adopted.
In January this year Representative Rosa DeLauro (D-CT) introduced the Paycheck Fairness Act of 2021. It passed in the House in April. This bill addresses wage discrimination on the basis of sex, which includes pregnancy, sexual orientation, gender identity, and sex characteristics
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A requirement of the Paycheck Fairness Act is that employers must provide detailed information to the federal government that ensures the Equal Employment Opportunity Commission (EEOC) and the Department of Labor have the necessary tools to enforce laws against pay discrimination, including employment-related data from employers analyzed by race, gender, and employees’ national origins.
The Paycheck Fairness Act also prevents retaliation for discussing salary with colleagues and prohibits employers from asking about a person’s salary history. In addition, it allows workers to participate in class action lawsuits that challenge systemic pay discrimination.
That’s all well and good, but why are women still earning 82 cents on the dollar (if they’re white) compared to men and what are the ramifications?
The first thing to understand is that the gender pay gap exists in every occupational category even when accounting for educational levels, skills, and worker’s choices. Assumptions like the ones men and managers often make are a big part of the problem.
For example, one assumption is that women choose lower level or lower paying work because they are mothers who bear the brunt of responsibility in meeting children’s needs. But as the Covid crisis revealed, the lack of childcare in this country leaves women little choice.
Such assumptions ignore the underlying causes of workplace discrimination and often lead to women being pushed out of their chosen career fields. Some of those underlying causes, in addition to not having affordable childcare, are the lack of adequate parental leave policies, flexible working conditions, paid family and medical leave, which most industrialized nations offer.
Importantly, advocates for equal pay underscore the fact that pay discrimination occurs in almost every field of work. Women, who are over-represented in the lowest paid industries, take the hardest hit. Collectively, women lose hundreds of thousands of dollars annually because of the pay gap driven by gender and race.
That loss has real-time, long-term consequences. Underpaid workers, primarily women, suffer lowered social security benefits, retirement pensions, and personal savings, which is why so many female elders find it difficult to survive with dignity in their later years.
The Biden administration understands this dilemma and has a committed focus on pay equity, a particular interest of Vice President Kamala Harris. Major corporations will soon be dealing with multi-million-dollar settlements in class action equal pay claims, and employers are likely to face big changes and a lot of scrutiny with regard to pay equity, not just around gender, but also around race. In addition to federal efforts, states are beginning to step up their equal pay laws too.
All that bodes well, but as we know, things move at a snail’s pace when it comes to enacting and enforcing legislation. Until there is true equality in wages and salaries, women are among many people who continue to wait for fairness in the workplace. For them, 82 cents on the dollar remains inadequate, and clearly insulting.