Equal Pay Day
Equal Pay Day is an annual effort that seeks to raise awareness of pay disparities and remove unjust pay practices. Equal Pay Day was initially established in the USA by the National Committee on Pay Equity (NCPE) and was first celebrated in 1996 (Grabham, 2023). The day is not an actual holiday but rather serves to remind us of prejudices that have to be eliminated.
Equal Pay Day falls on the day when females get the same mean average pay as males in the preceding year. Since this day falls on different dates every year, there is no universal day for a celebration. Thus, in 2022, Equal Pay Day fell on March 15, in 2023 – on the fourteenth, and in 2024 it will fall on March 15 again (Grabham, 2023). In strict terms, the day itself does not represent any improvement for women, for it is just an indicator of pay inequalities. However, if the gap between Equal Pay Days for several years in a row is reduced, one can speak about positive dynamics in pay for women.
Nationally, the difference in the payment of women to men is about 17 cents per dollar of wage. According to 2021 US Census statistics, the typical US female earns only 83 cents for every $1 earned by the average male (US Bureau of Labor Statistics). This indicates that women are underpaid for more than $10,000 per year on average due to wage inequality (US Bureau of Labor Statistics). In New Hampshire, this difference is even higher than nationally because it is one of the states with the lowest pay for women compared to men (US Bureau of Labor Statistics). Considering diverse racial groups, one can see that women who belong to Hispanic and white groups suffer more from pay disparities than their Afro-American counterparts (Picture 1).
The Lilly Ledbetter Act
The Lilly Ledbetter Fair Pay Act of 2009 is a bill approved by Congress that expanded employees’ salary discrimination protections. Those who face pay discrimination can seek redress under federal anti-discrimination legislation under the law. The legislation states that discriminatory practices based on age, religion, national origin, color, gender, or handicap will accumulate each time an employee obtains discriminatory pay (US Equal Employment Opportunity Commission).
This was President Barack Obama’s first measure. It is one of several federal laws that were adopted in answer to the case of Lilly Ledbetter, a former production manager of Goodyear Tire & Rubber Co. After discovering that her male contemporaries were paid much more for comparable tasks, Ledbetter filed a lawsuit against the Equal Employment Opportunity Commission (EEOC) under Title VII of the Civil Rights Act of 1964 (US Equal Employment Opportunity Commission).
The Act states that employees are not to be discriminated against in their work rights based on their race, gender, and ethnicity (US Equal Employment Opportunity Commission). The court ruled that “Ledbetter’s claim was time-barred by Title VII’s limitations period” (Ledbetter v. Goodyear Tire and Rubber Company, para. 3). However, the case attracted much attention and media coverage to the problem of gender disparities in payment, which finally resulted in the adoption of The Lilly Ledbetter Fair Pay Act of 2009.
Actions to Ensure the Equal Pay for All Employees
US labor legislation prohibits discrimination against employees based on remuneration and obliges the employer to ensure equal pay for work of equal value. At the same time, labor remuneration is a subtle tool for regulating labor relations. If an employee shows higher labor productivity or better quality of work, the employer has the right to encourage him, including financially.
If I owned a company, I would ensure equal treatment and pay of all employees by paying fixed salary rates to all the employees with the same positions and responsibilities. At the same time, for encouragement, I would develop the rules of paying financial incentives and fixing them in a company act. I believe that employees in one position should receive the same salary, but the variable part that comprises compensation, insurance, and bonuses may be different depending on the quality of work done but not on gender or race issues.
ERA
ERA is the Equal Rights Amendment, which explicitly prohibits sex discrimination. The ERA was passed by Congress in its contemporary form on March 22, 1972, although it was not ratified by all states (Thomas, 2020). The Amendment has to be adopted by legislatures in three-quarters (38 out of 50) of the states by March 1979 in order to be added to the Constitution (Thomas, 2020).
Yet, by that time, ERA had only been approved in 35 states, and the document had been pushed into the background. Lately, several states have ratified the ERA: Nevada became the 36th state to do so in 2017, while Illinois and Virginia became the 37th and 38th, respectively, in 2018 (Thomas, 2020). However, the Equal Rights Amendment has not been included in the Constitution.
References
Grabham, E. (2023). Decertifying Gender: The Challenge of Equal Pay. Feminist Legal Studies, 1-27. Web.
Ledbetter v. Goodyear Tire and Rubber Company. Oyez. Web.
Thomas, T. (2020). From Nineteenth Amendment to ERA: Constitutional Amendments for Women’s Equality. ABA Insights Magazine. Web.
US Equal Employment Opportunity Commission. Title VII of the Civil Rights Act of 1964. Web.
US Equal Employment Opportunity Commission. Lilly Ledbetter Fair Pay Act of 2009. Web.
US Bureau of Labor Statistics. Web.