Drive for Equal Pay Builds Greater Economic Security Across the States

Despite significant landmarks such as the Equal Pay Act of 1963 and the efforts of numerous advocacy groups to eliminate employment discrimination, the wage disparity faced by women and minorities remains a problem in the American workplace. The latest figures show that women make only 73 cents for every dollar made by men. African American women only make 63 cents and Latinas, a mere 56 cents for every dollar a man makes. Amplifying this income gap is the fact that most employed married women, including a large majority of African-American and Latina women, earn half or more of their household’s income. This gap in wages translates into a $200 billion loss of income per year to American families. Minority men are also affected by the income gap. In 1998, African American men earned only 75% of white men’s earnings (down from 80% in 1996) and Latinos claimed only 61.6% (down from 63.9% in 1996). On the whole, wage discrimination laws are poorly enforced, violations are difficult to prove and cases are even harder to win. But state leaders are not backing down. In an effort to make equal pay a reality, legislators and advocates across the country are pushing for equal pay in their own states. In 1999, over half of the states—27—introduced some form of legislation, and this year many more state legislators are a part of the fight against wage disparity. Fair pay is a critical component of economic security for America’s families. As Hawaii State Representative Iris Ikeda Catalani observes in The Honolulu Advertiser, "Equal pay isn’t just a women’s issue. Working women provide at least half of their family’s income. When women are paid equally, the whole family benefits." Today, the average American family loses $4,000 per year from wage discrimination. The wage gap is in large part due to the dominance of women and minorities in undervalued and low-paying occupations-such as clericals, nurses, and teachers. While part of the disparity mirrors differences in education and experience, a large portion is not based on these factors and is attributable to wage discrimination. Establishing pay equity will eliminate such discrimination by using sex and race neutral criteria to set wages. Leaders in a number of states (Hawaii, Kentucky, New Hampshire, South Dakota, Wisconsin) have moved equal pay legislation beyond the introduction phase. At the federal level, comparable worth legislation, which requires equal pay for work requiring comparable skill, effort, and responsibility that is performed under similar working conditions, has been introduced in both houses. Additionally, the U.S. Congress is considering a bill entitled the Paycheck Fairness Act, which provides more effective remedies for wage discrimination. Specifically, the legislation would include new data collection provisions, increased penalties under the Equal Pay Act, incorporate non-retaliation language, provide for increased training and research, and include a pay equity award. The large number of state and national legislators promoting fair pay legislation is testament to the importance of this issue to all American families. Legislators and advocates are responding not only to the overwhelming income loss statistics, but also to public support for fair pay. According to the Center for Policy Alternatives’1996 poll Women’s Voices for Solutions, the vast majority of both women (82%) and men (70%) believe that women are paid less than men for the same work. Equal pay ranked as one of the top concerns among American women. Women of all parties and races, especially African American women, want more enforcement of equal pay laws. These findings were confirmed by a recent AFL-CIO survey which found that 78% of the general public supported laws that require equal pay for equal work. Equal pay was the respondents’ single most highly ranked legislative priority. The Center for Policy Alternatives is working with leaders across the country to help secure fair pay in their states and this issue is featured in CPA’s Solutions for the New Economy: Building Blocks for a Strong and Healthy Economy, Families and Communities. This resource for state leaders offers overviews, key statistics, talking points, policy options, and resource organizations for a number of issues affecting our families, communities, and economy today. CPA is tracking legislative movement and providing media briefings in order to keep the public involved in the legislative debates on equal pay. For more information on fair pay or to join the equal pay electronic discussion forum, contact Nora O’Connell at 202-387-6030. STATE POLICY FOR EQUAL PAY South Dakota passed a resolution (HCR1002) endorsing the equal pay for equal work law. The Hawaii Senate passed a bill (SB2061) that would establish a four-year pilot project to promote fair pay and study trends of gender-based discrimination in the executive branch and promote fair pay. Pay equity legislation (HB12) in Kentucky, which prohibits wage discrimination based on sex, race or national origin and provides remedies for those who experience such discrimination, passed the House. The New Hampshire House passed legislation to adopt the Fair Pay Act (HB1450), model legislation developed by the AFL-CIO, and implement reporting requirements and enforcement procedures regarding wage differentials on account of gender and between minorities and non-minorities. Wisconsin’s Senate passed legislation (SB250) to require corporations and state agencies to disclose the race, ethnic, and gender composition of their employees at the senior level with corresponding salaries. Policy models for equal pay can be found at StateAction.org.