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February 9, 1999
MEMORANDUM FOR THE CHIEF OF STAFF
FROM:
BRUCE REED
LARRY STEIN
SUBJECT:
Meeting with Senator Harkin and Pay Equity Advocates
The President and Vice-President have spoken out in favor of equal pay and supported
Senator Daschle's Paycheck Fairness Act which strengthens the remedies available to women
under the Equal Pay Act. The Administration has not supported Senator Harkin's bill which
provides for comparable worth, a more controversial method that requires companies to
equalize wages between "equivalent" jobs. You will be meeting with Senator Harkin and
representatives of groups who favor comparable worth and will likely encourage the
Administration to endorse the concept of comparable worth. As a fall back, the groups will
push for strengthening of the Daschle bill and may seek reinsertion of a provision on pay
disclosure that was dropped out last year at the Administration's request. This memorandum
provides background on the Administration's strategy on the equal pay issue, compares
Daschle and Harkin's bills giving the legislative outlook for each bill, and offers some options
and recommendations.
I.
Background
The last major piece of equal pay legislation, the Equal Pay Act signed by President
Kennedy, became law more than 35 years ago. Since that time, the debate over how to
diminish the pay gap between men and women has frequently declined into disputes over how
large the gap actually is, what its causes are, and whether comparable worth is a desirable
policy. In the last few years, the Administration has gained strong public support by taking
steps to further equal pay, while not endorsing comparable worth. Among the actions the
Administration has announced in the last two years: endorsement of the Daschle bill (see
below); a $14 million equal pay initiative in the FY 2000 budget for the EEOC and the DOL's
Office of Federal Contractor Compliance (OFCCP); publication of a CEA report that shows a
significant wage gap between male and female workers; commitments by federal agencies to
conduct self-audits; and the creation of an annual report on pay differences to be published by
DOL. The President and Vice-President have held a variety of events to announce these steps
and raise public awareness of the issue, including mentioning equal pay in the State of the
Payment
Union, conducting a radio address on the topic this year, and hosting two events last year.
April
II.
The Daschle Bill
The Administration has endorsed "The Paycheck Fairness Act," introduced by Senator
Daschle and Congresswoman DeLauro, to strengthen laws prohibiting wage discrimination.
The measure is included this year as a one of the Democratic Leadership Initiatives. Key
aspects of the bill include:
Increased Penalties. The legislation would provide full compensatory and
punitive damages as remedies for equal pay violations, in addition to the
liquidated damages and back pay awards currently available under the Equal
Pay Act.
Non-retaliation provision. The bill would prohibit employers from punishing
employees for sharing salary information with their co-workers. Without the
ability to learn about wage disparities, it is difficult for employees to evaluate
whether there is wage discrimination.
Training, Research, and Pay Equity Award. The bill would provide for
increased training for EEOC staff; more research on discrimination in the
payment of wages; and would establish an award to promote employers who
have worked to eliminate pay disparities.
III.
Harkin's Bill
Last year, Senator Harkin introduced a comparable worth bill called the "Fair
Pay Act of 1997. (It doesn't appear that he has reintroduced the bill this year.) The
highlights of this legislation include:
Comparable Worth. Harkin's bill amends the Fair Labors Standards Act to
prohibit the paying of unequal wages for work on "equivalent jobs" in
occupations dominated by employees of different sex, race, or national origins.
The legislation defines "equivalent jobs" as "jobs that may be dissimilar, but
whose requirements are equivalent, when viewed as a composite of skills,
effort, responsibility, and working conditions." It exempts from this provision
wage differences on the basis of seniority, a merit system, or a quality/quantity
system.
Data Collection. The bill requires employers to submit wage data to the
EEOC. Employers must submit data not only with respect to job category but
also with respect to sex, race, and national origin. Furthermore, the EEOC is
authorized to publish this data and may provide specific employer's reports to
the public. This provision also is very controversial. Senator Daschle's bill had
originally contained a requirement for greater collection of wage data, but the
Administration felt this would draw a great deal of fire from Republicans and
the business community and it was replaced with Sense of the Senate language
that the President should increase the amount of information available on wage
disparities.
Non-Retaliation Provision. Harkin's bill also contains a non-retaliation
provision and a provision to permit the awarding of expert fees.
Education, Training, and Technical Assistance. The bill also provides for
research, education, and technical assistance.
IV. Legislative Outlook
Senator Daschle's bill has 20 cosponsors currently (Sen. Harkin has yet to
cosponsor, although he has in the past). On the House side, Congresswoman DeLauro's
bill, H. R. 541, has 34 cosponsors. Both of these bills are part of the "Democratic
Leadership" package of bills. Senator Harkin's bill had 8 cosponsors in the last
Congress, while the House version garnered 64 cosponsors. (By contrast, last Congress,
Senator Daschle brought 23 Democrats on board, while Congresswoman DeLauro's bill
had 95.) The Harkin-Norton bill is unlikely to attract more cosponsors because of lack of
support from the leadership, lack of strong lobbying efforts by interest groups, and its
controversial nature. The Daschle-DeLauro represents the bill with the greatest ability to
move, to draw some bipartisan support, and to have some chance of passage.
As a political matter, the Daschle bill offers Democrats the ability to raise the
issue on the floor, highlight our commitment to the issue, and spotlight differences
between supporters and opponents. If the bill fails to pass, the vote would give members
a record of fighting the wage gap and demonstrate that on a moderate bill where there is
a national consensus, opponents of equal pay denied passage. Whether the bill passes or
not, the attention such a fight would receive would focus attention on the problem and
broaden the constituency for further measures, including, possibly, for Senator Harkin's
bill. In contrast, endorsement of the Harkin bill at this time would likely drive members
away from the issue altogether in fear that they will be tarred as supporting government
wage-setting and radical interference in the labor market.
It is also clear that without a commitment from the interest groups, members,
and the Administration to work together on legislation, we will lose the opportunity to
raise the profile of this issue in any fashion. It is worth remembering that, while many
Democrats espoused the principle of fair pay for women and participated in numerous
events, no one tried to raise the issue on the floor. Without consensus support for our
legislative and outreach strategy, the issue will be a victim of in-fighting and fall off the
political radar screen.
V. Options & Recommendation
By backing Senator Daschle's bill as a first step, the Administration has gained an
excellent position from which to lead a national debate on the wage gap and advocate for
policies that will lead to more fairness in the workplace. In contrast, endorsing
comparable worth at this point would likely breakdown the chance to build momentum
on the issue, and spark only a debate over big government interference with the market
and wage-setting. Indeed, just last week a Wall Street Journal op-ed attempted to attack
the Daschle bill on the grounds that it promoted comparable worth, while giving only
partial attention to the existence of a wage gap -- a shift in focus that would be greatly
accelerated by Administration support for Harkin's bill. We believe that the
Administration should keep opponents of equal pay on the griddle by keeping the nation's
attention focused on the existence of the wage gap and the common-sense first steps we
all should be able to agree to in attacking it.
We suggest two other points that may be useful for the discussion. First, the
Administration's approach has been successful in advancing the ball and keeping
momentum in favor of the issue. For example, in addition to endorsing the Daschle bill,
the Administration has:
Supported a $14 million equal pay initiative in the FY 2000 budget for
the EEOC and the DOL's Office of Federal Contractor Compliance
(OFCCP);
Issued a CEA report that shows a significant wage gap between male and
female workers;
Committed federal agencies to conduct self-audits, and the creation of an
annual report on pay differences to be published by DOL starting this
year;
Discussed equal pay in the State of the Union, conducted a presidential
radio address on the topic this year, and hosted two events last year.
Second, to demonstrate that we remain committed to the fight to erase pay
disparities, you may want to suggest some intermediary steps the Administration could
consider, short of endorsing Harkin. While it would be a stretch to support comparable
worth, perhaps we could look more closely at increasing disclosure by employers;
encouraging, through a voluntary program, employers' attempts to remedy pay disparities
(this would be an expansion of a provision already in the Daschle bill); and,
strengthening the Daschle bill. The last option is already being considered by Senator
Daschle's office and the groups have submitted recommended changes to the bill. We
should agree that we will continue working with the groups in finding ways to make the
Daschle bill more attractive to them.
Equal
Pan:
w
26c
EQUAL PAY DAY
April 3, 1998
National Committee on Pay Equity
and the AFL-CIO
R
3
PHOTOCOPY
PRESERVATION
American Federation of Labor and Congress of Industrial Organizations
EXECUTIVE COUNCIL
FEDERATION
815 Sixteenth Street, N.W.
AMERICAN
OF
JOHN J. SWEENEY
RICHARD L. TRUMKA
LINDA CHAVEZ-THOMPSON
Washington, D.C 20006
PRESIDENT
SECRETARY-TREASURER
EXECUTIVE VICE PRESIDENT
LABOR
(202) 637-5000
Edward T. Hanley
Vincent R. Sombrotto
Gerald W. McEntee
John T. Joyce
AFL
CIO
Morton Bahr
Robert A. Georgine
Gene Upshaw
Jay Mazur
CONGRESS
Lenore Miller
John J. Barry
Moe Biller
Frank Hanley
and
ORGANIZATION
James J. Norton
Michael Sacco
Ron Carey
Arthur A. Coia
Frank Hurt
Gloria T. Johnson
Douglas H. Dority
George F. Becker
OF
Stephen P. Yokich
J. Randolph Babbitt
Clayola Brown
M.A. "Mac" Fleming
INDUSTRIAL
Carolyn Forrest
Pat Friend
Michael Goodwin
Joe L. Greene
Sonny Hall
Sumi Haru
Carroll Haynes
James LaSala
William Lucy
Leon Lynch
Douglas J. McCarron
A.L. "Mike" Monroe
Arthur Moore
Arturo S. Rodriguez
Robert A. Scardelletti
Robert E. Wages
Jake West
Alfred K. Whitehead
Andrew L. Stern
Edward L. Fire
Martin J. Maddaloni
John M. Bowers
Sandra Feldman
R. Thomas Buffenbarger
Boyd D. Young
Dennis Rivera
For Information:
Naomi Walker 202/637-5093
FOR RELEASE THURSDAY, APRIL 2, 1998
AFL-CIO Announces Support for Equal Pay Initiatives Introduced by
Vice President Gore, Senator Daschle, and Representative DeLauro
Equal Pay a Top Priority on AFL-CIO's 1998 Agenda for Working Families
Washington, April 2 - Although the Equal Pay Act was passed 35 years ago, women's
paychecks are still falling far short of men's. That's why in a recent survey commissioned by the
AFL-CIO, 99% of the working women surveyed said equal pay is a top concern. And that's why,
top officials of the AFL-CIO said they will work hard to enact new equal pay initiatives
introduced at the White House today.
"Unless the wage gap is closed, the average 25-year-old working woman can expect to
lose $523,000 over the course of her career," said AFL-CIO Executive Vice President Linda
Chavez-Thompson.
"Working families pay the price for unequal pay - it's not just a women's issue. Equal
pay can make the difference in whether a family can afford quality child care, decent health care,
college education for the kids, a secure retirement, or simply being able to pay the monthly bills
on time," she said.
A woman has to work 15 months to earn what a man earns in 12 months. On average,
women earn 74 cents for every dollar earned by men. Women of color fare worse: African-
American women earn 65 cents and Latino women earn 57 cents for every dollar earned by men.
"No issue touches more working families or is more important to their living standards
than equal pay," stated AFL-CIO President John Sweeney. "That's why we have launched a
nationwide grassroots campaign to fight for women's wages. The AFL-CIO is making equal pay
one of the main goals of our 1998 Agenda for Working Families."
"The legislation being introduced by Senator Daschle and Representative DeLauro and
the initiatives unveiled by the White House will provide working women with a powerful tool to
combat wage discrimination and help close the wage gap."
###
American Federation of Labor and Congress of Industrial Organizations
EXECUTIVE COUNCIL
AMERICAN FEDERATION OF LABOR
815 Sixteenth Street, N.W.
JOHN J. SWEENEY
RICHARD L. TRUMKA
LINDA CHAVEZ-THOMPSON
Washington, D.C. 20006
PRESIDENT
SECRETARY-TREASURER
EXECUTIVE VICE PRESIDENT
(202) 637-5000
Edward T. Hanley
Wayne E. Glenn
Vincent R. Sombrotto
Gerald W. McEntee
CONGRESS OF AFL INDUSTRIAL
John T. Joyce
Morton Bahr
Robert A. Georgine
Gene Upshaw
Jay Mazur
Lenore Miller
John J. Barry
Moe Biller
George J. Kourpias
John N. Sturdivant
Frank Hanley
James J. Norton
Michael Sacco
Ron Carey
Arthur A. Coia
Frank Hurt
Gloria T. Johnson
Douglas H. Dority
George F. Becker
Stephen P. Yokich
J. Randolph Babbitt
Clayola Brown
M.A. "Mac" Fleming
Carolyn Forrest
Pat Friend
Michael Goodwin
Joe L. Greene
Sonny Hall
Sumi Haru
Carroll Haynes
James LaSala
William Lucy
Leon Lynch
Doug McCarron
Andrew McKenzie
A.L. "Mike" Monroe
Arthur Moore
Arturo S. Rodriguez
Robert A. Scardelletti
Robert E. Wages
Jake West
Alfred K. Whitehead
Andrew L. Stern
Edward L. Fire
Martin J. Maddaloni
John M. Bowers
Sandra Feldman
Statement by Linda Chavez-Thompson
Equal Pay Day
April 2, 1998
Last September, the AFL-CIO - which with 5 ½ million women members is the largest
organization of working women in the country - asked working women in every kind of job --
in every part of the country -- to tell us about the biggest problem they face at work.
Ninety-nine percent said a top concern is equal pay.
And most women told us that despite the economic good times, it is just as hard now as it
was five years ago to make ends meet
or it's become even harder.
The truth is that working women need and deserve equal pay.
The wage gap between women and men is huge.
If it is not changed, the average 25-year-old working woman can expect to lose $523,000
over the course of her work life.
That's enough to make a world of difference for most working families.
It can mean decent health care
a college education for the kids
a secure retirement
and simply being able to pay the monthly bills on time.
That is what the wage gap now takes from working women.
It's the price of unequal pay.
Patricia Hoersten knows what that's about.
Pat served lunch and dinner at a diner in Lima, Ohio. She got paid half of what the male
servers got paid - because her supervisor thought she only needed extra money, not money to
live on.
The tragedy is that there are millions of women who are experiencing the very same
injustice.
Is this a women's issue?
It is -- but it's also a family issue, because women's wages are essential to their families.
Most working women contribute half or more of their household's income.
So when working women lose out, working families lose out.
The good news is that working women are joining together to fight for equal pay.
I've been able to hear from many of them.
One is Maria Olivas. She's a clerical worker at Columbia University.
Maria worked with her union to make sure that her employer disclosed how much it paid
men and women for the same job. They found out that men were paid $1,500 more than women
for the same job. After a long struggle, they were able to win equal pay.
There are lots more like her.
Grocery store clerks at Publix Supermarkets won $80 million in back pay because they
were not getting equal pay and promotions.
But no woman should have to fight by herself for equal pay.
That's why the AFL-CIO has launched a nationwide grassroots campaign to fight for
women's wages.
That's why the union movement is making equal pay one of the main goals of our 1998
Agenda for Working Families.
And that's why the AFL-CIO applauds, supports, and will work to enact the legislation
being introduced by Senator Tom Daschle and Representative Rosa DeLauro.
This legislation will give women an important weapon to battle wage discrimination and
to help close the wage gap. It's about time.
Now, I am pleased to introduce Susan Bianchi-Sand, the President of the National
Committee on Pay Equity. Susan has long been an advocate for equal pay, and we are pleased to
be working with her to promote Equal Pay Day.
2
For Information:
Naomi Walker, AFL-CIO
202/637-5314
Evelyn Knolle, NCPE
202/331-7343
Across the Country,
Thousands of Women Ask, "Where's My 26 Cents?"
In 50 States across America, women will speak out against the wage gap on April 3, 1998 - Equal Pay
Day. Women will demand equal pay at rallies, press conferences, and gatherings in every region of the
country. They will hand out buttons, stickers and leaflets and talk to their elected officials. The following
is a sampling of what women are doing to commemorate Equal Pay Day in their communities.
In the Northeast
Boston, Massachusetts
The Boston University School of Social Work, in conjunction with the Women's Bureau of the U.S.
Department of Labor, is sponsoring an educational forum titled "Equal Pay: What Young Women
Entering the Job Market Should Know" on Thursday, April 2.
Contact: Professor Judith Gonyea (617) 353-3748.
New York, New York
The New York Central Labor Council will host a breakfast forum on Equal Pay and Women in the
Workplace on Friday, April 3. Speakers will include Brian McLaughlin, President of the NY Central
Labor Council, Francine Moccio, of Cornell University, and Sedora Villa, Business Agent, OPEIU. 50 -
100 working women are expected to attend this breakfast at the NY City Federation of Labor.
Contact: Ellen Warren, NY CLC (212) 685-9552.
Harrington, Delaware
Members of the Business and Professional Women USA/ Delaware will hold a press conference and
distribute pencils with play money wrapped around them - the fake bills have holes in them to reflect the
holes in women's paychecks.
Contact : Linda Chick (302) 398-3898.
Garrett County, Maryland
The Garrett County Commission for Women and the Business and Professional Women/ Garrett County
are sponsoring an essay contest on the wage gap for 11th and 12th grade English students. Contact: Susan
Athey-Oxford (301) 344-1189.
Baltimore, Maryland
Women from more than 6 unions and the Baltimore Central Labor Council will gather at noon at a busy
intersection encouraging individuals to "Blow their Horns for Fair Pay." They will distribute equal pay
materials and sell $.26 cupcakes.
Contact: Armeta Dixon (410) 332-1199.
In the West
San Fernando Valley, California
Members of the Business and Professional Women USA/Greater San Fernando Valley area will carry red
purses to show that women's pay is "in the red."
Contact: Mila Gappa (818) 592-0055.
Denver, Colorado
The Public Employees Department, AFL-CIO, with the community college, the Dept. of Social Services,
Dept. of Higher Education, Department of Transportation, Dept. of Health and Environmental Services
and other city employees will hold lunch events at their respective worksites discussing Equal Pay and
providing information to their co-workers.
Contact: Jo Romero (303) 832-5661.
9to5 Colorado, Colorado Women's Agenda, Business and Professional Women USA/Colorado and the
Colorado ALF-CIO are sponsoring a press conference a the Wynkoop Brewing Company's Brew Pub.
The Wynkoop will offer a 26 cent on the dollar discount to all working women who mention Equal Pay
Day between 11:00 am and 2:00 pm.
Contact: Debbie Wamsley (303) 433-2100
Hawaii
In Maui, the Business and Professional Women USA/Hawaii is handing out "Equal" Pay Day candy
Bars. Contact: Wendy Riley (808) 242-7242. In Honolulu, women are distributing informational
materials to 5,000 students at the University of Hawaii.
Contact: Suzan Jane (808) 956-7551.
Sante Fe, NM
The New Mexico Federation of Labor, the Sante Fe chapter of the American Association of University
Women and OPEIU #277 will hold a rally at the Capitol steps in Sante Fe on April 3 at noon. The Mayor
of Sante Fe will issue an Equal Pay Day proclamation at this rally.
Contact: LaMonte Farenthold, New Mexico Federation of Labor (505) 232-0062
In the Mid-West
Springfield, Missouri
Women will hold a fundraiser for research on the wage gap in their area.
Contact: Carol Conway (417) 886-7048.
Chicago, Illinois
The AFL-CIO, Jobs with Justice, Airline Flight Attendants (AFA), the Coalition of Labor Union Women
(CLUW) and SEIU will hold an Rally on April 3 (4:00 p.m.) at the Federal Plaza. Pat Friend, President
of the Airline Flight Attendants Union, will address this event highlighting the two-tiered wage system for
women and men in non-traditional occupations.
Contact: Rene Manley, AFL-CIO (847) 255-4747.
Lansing, Michigan
The Michigan State AFL-CIO will host an "Equity and Equality" panel discussion and a workshop on
Women's Economic Future at it's 1998 Women's Conference April 3-5.
Contact: Bertha Louise Poe (517) 487-5966.
Urbana, Illinois
Members of the Urbana chapter of the National Organization for Women (NOW) is holding a bakesale
and coordinating information tables at the University of Illinois campus. Baked goods will be sold at
discounted prices for women.
Contact: Ruth Wyman (217) 352-6533.
Grand Forks, North Dakota
The Northern Valley Central Labor Council will host Equal Pay Day activities with labor partners and the
University of North Dakota. They will also organize a phone bank to Congress for support of the Fair
Pay Act.
Contact: Mark Froemke (701) 775-9358.
Gary, Indiana
Indiana University will incorporate Equal Pay Day in a Balancing Work and Family workshop. The
Northwest Indiana Women's Museum Celebration will provide materials on the wage gap.
Contact: Ruth Needleman (219) 938-0811.
In the South
Charlotte, North Carolina
The Mecklenberg County Women's Commission is distributing fliers in the shape of a dollar bill that say
"Families Fare Better with Fair Pay."
Contact: Debbie Guilbault (704) 336-3409.
The Charlotte Central Labor Council and the Communications Workers of America (CWA) will hold a
press conference at Bell South Plaza in downtown Charlotte on Monday April 6th to "Turn up the Heat on
Bell South". In September 1997, the EEOC ruled that Bell South had discriminated against employees
and worse, knew they were doing so. Seven months after the ruling, Bell South has refused to sit down
and negotiate a settlement.
Contact: Sandy Weaver, CWA-3603 (704) 568-8670.
River City, Kentucky
The Business and Professional Women USA/ River City is coordinating a press conference at 11:05 am
(the 26% mark in the day) across from the county courthouse. Lt. Governor Steve Henry will present a
proclamation and join 15 organizations in speaking out against the wage gap.
Contact: Paula McCraney (502) 339-7459.
Austin, Texas
The Business and Professional Women USA/ Austin is holding a rally and press conference with elected
officials at the state capitol.
Contact: Penny Green (512) 452-5109.
AFL-CIO WORKING WOMEN'S DEPT 815 16TH STREET, NW O WASHINGTON, DC 20006 o 202-637-5064 O FAX 202-508-6902
WORKING
AFL-CIO
WORKING
TOGETHER
Working Women Want Equal Pay
Summary of Recent Polling
Equal Pay is an Urgent Workplace Concern
In the August 1997 Ask A Working Woman survey, virtually every woman identified
equal pay as an urgent workplace concern: 94% said equal pay is very important, and another
five percent called it somewhat important. Altogether, 41% of the women described pay-related
issues -- equal pay, discrimination, low pay -- as their top workplace problem. Yet one-third of
working women said their jobs do not provide equal pay.
Ask A Working Woman, Lake Sosin Snell Perry and Associates, August 1997.
In the 1994 Working Women Count! Survey, equal pay was the second-ranked concern
of working women; nearly half (49%) of the respondents said that "getting paid what [the] job is
worth" is a serious problem. Asked to identify their priorities for important workplace reforms,
roughly two-thirds of respondents (64.5%) ranked "improving pay scales" at the top (virtually
tied with the number one priority, universal health insurance (65.4%).
Working Women Count!. US Department of Labor/Share Systems of Somerville, MA, June 1994.
The Public Wants Tougher Enforcement of Equal Pay Laws
Respondents to the 1996 Women's Voices survey identified unequal pay and low pay as
one of the biggest problems women face at work, along with problems in combining work and
family. Overwhelming majorities 82% of women and 70% of men -- said employers pay
women less than men for doing the same work. Asked to choose among a range of possible
equal pay remedies, more than half said the most effective solutions are tougher enforcement of
existing laws and raising women's wages.
Women's Voices, Lake Research/American Viewpoint/Buffalo Qualitative Research, September 1996.
to join the Working Women Working Together Network call toll-free 1-888-971-9797
Voters in general and union members in particular believe that boosting equal pay
protections through better laws and stepped up enforcement is critical. In 1996, equal pay
enforcement was one of a handful of issues described by more than three-fifths of union voters
(61%) as warranting greater governmental action. By January of this year, boosting equal pay
protections had moved to the top tier: 75% of the public and 75% of union members said they
strongly support Congressional proposals requiring employers to give women equal job
opportunities and equal pay.
Peter D. Hart Research Associates, November 1996 and January 1998.
Both Men and Women Agree - Equal Pay is Essential for Working Families
Most recently, in the February 1998 Family Matters: Topline Report, six of every ten
women and half of the men surveyed said they worry that women are not getting equal pay or
equal opportunities for jobs and promotions.
Family Matters, Lake Sosin Snell Perry and Associates/National Partnership for Women and Families, February 1998.
Women and men care deeply about equal pay because it's the right of every working
woman -- and because it's a necessity. More women are in the paid workforce today than ever
before, and their wages are essential to support families. Nearly two-thirds of all working
women (64%) and more than half of married working women (52%) say they contribute half or
more of their households' incomes. Despite a booming economy, families still struggle just to
make ends meet. In January, six of every ten survey respondents (58%) told us that they make
just enough money -- or less -- to keep up with their families' bills. Two-thirds of Ask A
Working Woman survey respondents told us last August that the task of making ends meet had
gotten worse (37%) or stayed the same (31%) over the last five years. One year earlier, 39% of
women and 37% of men told the Women's Voices pollsters that their families' incomes had
fallen behind over the preceding twelve months. Women and men alike recognize that equal pay
for working women will help mitigate these burdens: six of ten voters (59%) say that both
women and men benefit from pay equity because it boosts overall household income.
Peter D. Hart Research Associate, January 1998; Ask A Working Woman, Lake Sosin Snell Perry and Associates,
August 1997; Women's Voices, Lake Research/American Viewpoint/Buffalo Qualitative Research, September 1996;
Lake Research. Public Opinion on Pay Equity, February 1997.
You Can Win!
It's Time for Working Women
WORKING
In 1997, Home Depot and Publix Supermarkets each agreed to pay more than $80 million to
to Earn Equal Pay
WOMEN™
settle major lawsuits charging them with sex discrimination against thousands of working
women. The lawsuits alleged that, among other things, the companies had assigned women
to lower paying jobs, refused to give them raises, denied them promotions and treated men
Fact Sheet
better in other ways as well.
EQUAL
On a smaller scale, in November 1997 a jury ordered Oregon State University to give back
pay and other monetary damages to a woman who was fired from coaching the women's
PAY
AFL-CIO
softball team there and replaced by a man in 1993. The jury found that throughout the coach's
tenure the university paid her less than male coaches, discriminated against the women's
Equal pay has been the law since 1963. But today, 35 years later, women still are paid
athletic program and retaliated against the woman coach because she challenged discrimi-
less than men-even when we do similar work and have similar education, skills and
natory practices.
experience. In 1976, women were paid 74 cents for every dollar men received. That's
$26 less to spend on groceries, housing, child care and other expenses for every $100
worth of work we do.
What Else Can You Do?
Support efforts to bring "pay equity" to your workplace. "Pay equity" means
Because we're paid less now, we have less to spend on our families and less to save for
paying equal wages for jobs of equal value to a company. You and your co-workers
our futures. And when we retire we'll earn smaller pensions than men. In 1994,
(or your union) can encourage your employer to implement a pay equity policy, in-
women's private-pension benefits were less than half those of men-just $3,000 a year,
cluding a job evaluation system that reviews and compares the education, skills and
compared with $7,800.
experience needed to perform different jobs. Your employer then may adjust pay rates
Sure, we've made progress. But not nearly enough and not fast enough. In the 35 years
SO that jobs of equal value to the company are paid equally-regardless of who holds
since the Equal Pay Act passed, the pay gap between men and women has narrowed
them. In addition, your union can include pay equity among its bargaining demands.
by less than half, from 41 cents per dollar to 26 cents. And research by the Institute
Unions have won hundreds of millions of dollars for women and men by bargaining
for Women's Policy Research (IWPR) finds that most of the recent change is because
for pay equity.
men's real wages have been falling-not because women's have risen.
Support new federal and state laws designed to strengthen protections
against pay discrimination and bring pay equity to the workplace. Organize
Equal Pay Is an Issue for All Working Women
your friends and co-workers to urge your U.S. senators and House members to vote
Over the past few decades, laws barring discrimination in education and employment
for the Fair Pay Act or other proposals that may be introduced in Congress to require
have helped give working women opportunities our mothers never had. Today, women
employers to end pay discrimination against women. And push your state legislature
work in many different fields, each requiring different skills and experience and paying
to enact similar pay equity protections.
different wages. But opening doors for working women has not closed the door on pay
If you work for a state or city government, find out whether efforts have been
discrimination. Equal pay is a problem for all working women-
made to end pay bias against public employees. Many have. As of 1996, 45 state
For women lawyers, whose median weekly earnings are nearly $300 less than those
governments had taken some type of pay equity action, ranging from simple studies
of male attorneys, and for women secretaries, who receive about $100 a week less
to actual pay adjustments. If your state or city hasn't taken action to end pay bias
than male clericals;
against its own employees, tell your state and local officials that you want your tax
Women's Earnings as a
dollars to go to equal pay for working women!
For women doctors, whose median
Percentage of Men's Earnings
earnings are more than $500 less
100%
each week than men's, and for the
80%
Join the Working Women Working Together Network to get useful information
95 percent of nurses who are women
and the opportunity to make a difference. Call 1-888-971-9797.
but who earn $30 less each week
60%
than the 5 percent of nurses who are
40%
For more information about pay discrimination and how to end it, contact the Coa-
men;
lition of Labor Union Women, 202-785-7200; the National Committee on Pay Equity,
20%
202-331-7343; the National Employment Lawyers Association, 415-227-4655; the
For women professors, whose me-
0%
National Employment Law Project, 212-285-3025; the Women's Legal Defense Fund,
dian pay is $170 less each week than
1955
1960
1965
1970
1975
1980
1985
1990
1995
202-986-2600; the U.S. Department of Labor's Fair Pay Clearinghouse, 1-800-347-3741;
men's, and for women elementary
or the 9to5 Job Problems Hotline, 1-800-522-0925.
school teachers, who receive $70 less
Source: Institute for Women's Policy Research. The Wage
Gap: Women's and Men's Earnings. Note: Women's
a week than men;
earnings as a percentage of men's earnings are based on the
median annual earnings of full-time, year round workers.
One of a series of Fact Sheets produced by the AFL-CIO Working Women's Department, 815 16th St.,
N.W., Washington, D.C. 20006, 202-637-5064, e-mail at [email protected] or on the web
at www.aflcio.org\women\
4
1
For women food service supervisors, who are paid about $60 less each week than men
How Do We Fix Pay Discrimination?
in the same job, and for waitresses, whose weekly earnings are $50 less than waiters'.
The laws that bar pay discrimination include "remedies." Proving discrimination can
be hard and can take a long time. But women who win often get back pay, new job
It's an Issue for Children and Families-and for Men, Too
opportunities and repayment of lawyer fees and other money they spent to have their
Equal pay is not just a working women's issue-it's a family issue. If we ended pay
rights enforced.
discrimination against women, family incomes would rise. Working parents would have
more to spend on household needs and more to save for their children's education or
What Can You Do if You Believe Your Rights Have Been Violated?
their own retirement security. Working parents might be able to spend less time at
You can:
work and more time with their families-a change that many families would welcome.
File a discrimination charge with a federal or state anti-discrimination
Ending pay discrimination would help men, too. When an employer ends discrimination
agency. The federal Equal Employment Opportunity Commission (EEOC) enforces
by raising pay for jobs traditionally done by women (nursing, for example), men in those
the Equal Pay Act and Title VII, as well as several other laws barring discrimination.
jobs get raises as well. If we had equal pay for work of equal value, the IWPR estimates,
women's pay would be 13 percent higher and men's pay would go up 1 percent. The law
If you believe you have been denied a job, paid less, passed over for promotions or
bars employers from lowering men's pay to correct discrimination against women.
discriminated against in other ways because you're a woman, you can file a complaint
with the EEOC office in your area. Generally, you must file your complaint within 180
Women Get Paid Less Because
days of the discriminatory action. You don't need a lawyer; the EEOC will help you
Employers Still Discriminate in Several Ways
prepare the case and advise you of additional rights you may have or steps you should
take (including any requirements for filing complaints with state agencies).
Jobs usually held by women pay less than jobs traditionally held by men-even if they
require the same education, skills and responsibilities. For example, stock and inventory
To be connected with the EEOC office in your area, call 1-800-669-4000. The EEOC
clerks, who are mostly men, earn about $470 a week. General office clerks, on the other
also can give you information about state or local fair employment agencies in your
hand, are mostly women and they earn only $361 a week.
area.
Women don't have equal job opportunities. A newly hired woman may get a lower-pay-
The federal Office of Federal Contract Compliance Programs (OFCCP), part of the
ing assignment than a man starting work at the same time for the same employer. That
U.S. Department of Labor, enforces Executive Order 11246. For information about
first job starts her career path and can lead to a lifetime of lower pay.
filing a complaint with OFCCP, call 1-888-376-3227.
If you belong to a union, talk to your shop steward. The steward can give you
Women don't have an equal chance at promotions, training and apprenticeships. Because
advice about your rights and help you file a grievance under the collective bargaining
all these opportunities affect pay, women don't move up the earnings ladder as men do.
agreement. The steward may also be able to help you file a complaint with the EEOC
But Discrimination Is Against the Law
office in your area.
An employer who pays women less than men or denies them job opportunities just
If you don't belong to a union,
because they are women is guilty of sex discrimination. Two federal laws, an executive
join one. When workers organize
order and some state and local laws prohibit pay discrimination against women.
Women's Earnings as a
into a union, they have a repre-
Percentage of Men's Earnings,
sentative who bargains with the em-
The Equal Pay Act: Under the Equal Pay Act, which covers most workplaces, it is
All Workers and Union Workers
ployer on their behalf over wages,
unlawful to pay women less than men for work that is "substantially equal"-that
100%
hours and other terms and conditions
is, almost identical-unless the pay difference is based on seniority, experience or
of employment. The union has a
other legitimate factors.
unique ability to look at the wage
rates for all the workers and deter-
Title VII: Title VII of the Civil Rights Act of 1964, which covers employers with 15
mine if the company is paying women
or more workers, prohibits a range of discrimination, including paying women less
50%
84%
less than men.
than men-even when their jobs are different-if the reason for the pay difference
75%
is gender. Title VII also bars discrimination against women in hiring, promotion,
Unionization really works! It nar-
training, discipline and other job aspects, and makes sexual harassment against
rows the wage gap by more than
women workers illegal.
one-third: In 1996, union women
0%
All Workers
Union Workers
earned 84 cents for every dollar
Executive Order 11246: A third measure, Executive Order 11246, is a long-stand-
1996
earned by union men, compared
ing presidential directive (which has the effect of law) that applies the protections of
the Equal Pay Act and Title VII to companies that receive federal contracts.
Source: Bureau of Labor Statistics. Union Membership in
with 74 cents for women workers
1996. Note: Women's earnings as a percentage of men's
overall.
State and Local Laws: Many states and communities have their own fair employ-
earnings are based on the median weekly earnings of full-
time workers.
And unions usually bring about
ment laws and agencies that enforce equal pay protections and other prohibitions
higher pay. Unionized women earn
against sex discrimination on the job. These laws are similar to-and sometimes
38 percent more than women who
stronger than-federal laws.
aren't in unions.
2
3
Highlights of Federal and State Equal Pay Legislation
Working women want equal pay -- and legislators are listening. In state legislatures, in
Congress, and in the White House, initiatives are underway to strengthen equal pay enforcement
and protections against wage discrimination. Examples include:
Equal Pay Action in the States
A Fair Pay bill before the Alabama legislature would bar employers from paying workers
differently for equivalent jobs that are segregated by gender, race or national origin, unless the
pay differences are based on seniority, merit, or quantity or quality of production. "Equivalent
jobs" are jobs with identical composites of skill, effort, responsibility and working conditions.
The bill bans retaliation for challenging pay practices, as well as requesting or disclosing
employer wage data; requires annual wage reports by business (open to the public); and
authorizes compensatory and punitive damages for violations.
In Connecticut, a bill introduced in early March would bar employers from paying
different rates to workers in equivalent jobs, because the jobs are dominated by workers of one
gender, race or national origin. It requires employers to provide employees, upon request,
information about jobs and wages, and prohibits retaliation against employees for seeking or
disclosing such information. The bill directs the state Labor Department to publish data on
occupational distribution and wages by sex, race and national origin, and to issue fair pay rules.
Several measures are heading for a vote in the State Assembly in New York. Three of the
measures would amend the labor, human rights and civil service laws, while another would
amend the state's constitution. Collectively, the bills would bar public and private sector
employers from discriminating in pay based on sex, race or ethnicity. The intent of these bills is
to provide a broader pay equity standard than the equal work requirement that now applies under
the states' laws. One measure dealing only with sex-based differentials would allow differentials
based on any factor other than sex, including seniority, merit, or quantity and quality of
production.
The West Virginia legislature passed a bill on March 12, 1998, that prohibits the state
from paying male and female employees different wages for work of "comparable character" that
requires "comparable skills," except where differences are based on seniority, merit, or quantity
or quality of production. It bars retaliation against employees who seek to enforce the equal pay
protections. Violations would be enforced through employee grievances. The bill creates a state
Equal Pay Commission to recommend a methodology and funding to implement the equal pay
mandate, as well as to publish implementation rules by July 1, 2001.
Equal pay initiatives have been under consideration in several other states as well.
Equal Pay Action in Congress
The Paycheck Fairness Act, sponsored by Senator Daschle and Congresswoman
DeLauro is slated for introduction in the near future. The Act strengthens penalties that courts
may impose for equal pay violations and prohibits retaliation against workers who inquire about
or disclose information about employers' wage practices. The Act provides for compensatory
and punitive damages, in addition to back pay, for women denied equal pay for equal work;
authorizes class action equal pay suits; and directs the U.S. Department of Labor to provide
public information about strategies for identifying and eliminating wage discrimination, as well
as to issue guidelines for evaluating jobs. The President has announced his support for the
Paycheck Fairness Act.
The Fair Pay Act, sponsored by Senator Harkin and Congresswoman Norton, would
prohibit wage discrimination based on sex, race and national origin, by requiring employers to
provide equal pay for work of equal value, whether the jobs are the same or not. The bill would
also ban retaliation against workers who challenge pay practices, seek or disclose wage
information, and require employers to file wage information annually with the EEOC. The Fair
Pay bills were introduced last year.
DC 20006
202-637-5004
ΓAX 202-508-6902
WORKING
WOMEN
EQUAL
PAY
alert
AFL-CIO
It's High Time-Past Time-for
Women of Color to Earn Equal Pay
Thirty-five years after the passage of the Equal
African American women only earn 67
Pay Act, paychecks and pensions for women of
percent of what men earn.
color are still coming up short. And women know
it. Here's what you told us in the Ask A Working
Latinas earn 58 percent of what men earn.
Woman survey:
Asian Pacific American women, too, earn less.
Hands down, the top concern for women
Their pay inequality is less severe than for
workers is equal pay.
women as a whole, but they still earn only 80
percent of men's pay. (Note: In many cases,
Nearly every woman of color (98 percent) thinks
figures are unavailable for Asian Pacific
equal pay is important-yet more than half of
American women workers.)
African American women (54 percent) say they
don't have it.
Women's Earnings
While 85 percent of Latinas say pension benefits
as a Percentage of the Earnings
are very important to them, only 57 percent have
of All Men in 1996
these benefits.
100%
The top job problem cited by Asian Pacific
80%
74%
75%
80%
American women in the survey is sex
60%
67%
discrimination.
58%
40%
If you're a woman of color in America today,
20%
chances are you'll spend at least part of your
life working for pay-not enough pay.
0%
White Women
Asian Pacific
Less than 2 percent of all working women earn
American Women
All Women
African American Women
Latinas
more than $75,000 a year-and 70 percent earn
Source: Department of Commerce. Bureau of the Census.
less than $25,000 a year.
http://www.census.gov/hhes/income/histinc/incperdet.htm
These earnings ratios represent women's earnings as a percentage of
Less than 1 percent of African American
the earnings of men. All comparisons are made to all men.
women earn more than $75,000 a year-and
73 percent earn less than $25,000.
African American women workers earned a
Less than 1 percent of working Latinas earn
median of just over $15,000 in 1996. Latina
more than $75,000-and 82 percent earn less
workers earned less than $12,000.
than $25,000.
At the patient's bedside, behind the cash regis-
In 1996, women were paid 74 cents for every
ter or in the executive suite-women of color
dollar men received. That's $26 less to spend on
earn less.
groceries, housing. child care and other expenses
Most women of color hold low-paying jobs.
for every $100 worth of work we do.
Three-quarters of African American women and
to join the Working Women Working Together Network call toll-free 1-888-971-9797
Primary Occupations for Women of Color, 1996
More than three-quarters (77
percent) of African American
African American Women
Latinas
women surveyed said they provide
Median
about half or more of their
Median
Weekly Earnings -
Occupation
Weekly Earnings -
All Women
Occupation
household income.
All Women
1. Nursing aides,
1. Cashiers
$240
Sixty-eight percent of Latinas
orderlies and attendants
$286
surveyed said they provide about
2. Secretaries
$406
2. Cashiers
$240
half or more of their household
3. Sales workers, retail
income.
3. Secretaries
$406
and personal services
$259
In African American and Latino
Source: U.S. Department of Labor, Facts on Working Women, "Women of Hispanic Origin in
families, women's income is espe-
the Labor Force," Feb. 1997. U.S. Department of Labor, Facts on Working Women, "Black
cially important because African
Women in the Labor Force," March 1997. Also, U.S. Department of Labor, Employment and
Earnings, Jan. 1997.
American and Latino men earn
less than white men.
The median income for African
Latinas work in just three types of employment-
American families in 1996 was
sales and clerical, service and factory jobs.
only $26,522. For Latino families it was
(Two-thirds of white women hold such jobs.)
$26,179. That's only two-thirds of the average
for all families-$42,300. And it's far below
African American women are most commonly
the family income of the top 5 percent of
employed as nursing aides, orderlies and
Americans-$217,355 a year.
attendants. The pay? A mere $286 a week.
You're more likely to retire poor, too.
For Latinas, the most common occupation is that
of cashier, and here the pay is even less-$240 a
Women are less likely than men to have pension
week.
plans. Once we retire, we're less likely to receive
pension checks-and those checks are only half as
For the majority of women of color, their jobs
big as men's.
don't even pay enough to reach the poverty line
for a family of four-$16,036 in 1996.
Nearly two out of three working women have no
pension plans-and pension coverage in the jobs
Sixteen percent of African American and
most common to women of color is especially
Latina working women live below the poverty
low.
line-more than double the rate (7.7 percent)
for all women workers.
Among African American women in sales and
service, only one in five is covered by an
Even women of color in higher-level jobs earn less.
employer-provided pension plan.
Twenty-three percent of African American
Latinas have it worse-only 16 percent of
women workers and 17 percent of Latina
Latinas in sales and only 13 percent of Latinas
workers hold professional and managerial jobs.
in service have pension coverage.
Women in these jobs earn only 72.3 percent of
what their male counterparts earn.
Among all women who are older than 65 today,
only one in five, including one in five African
Equal pay isn't just a women's issue-
American women, receives a pension check.
it's a family issue.
Only one in nine Latinas older than 65 is
Your family depends on you
receiving a pension check.
Nearly two-thirds of working women report that
In 1994 the average pension for women was
they provide about half or more of their household
only $3.000 a year-less than half that of men.
income. Two out of five working women head
their own households and 28 percent have depend-
Today, 30 percent of African American women
ent children.
and 28 percent of Latinas older than 65 live in
poverty.
2
Here's What You Can Do
If you belong to a union, talk to your shop
Working women are joining together to gain equal
steward. The steward can give you advice
pay. You can:
about your rights and help you take action under
your collective bargaining agreement.
File a discrimination charge with a federal or
state anti-discrimination agency. The federal
If you don't belong to a union, join one.
Equal Employment Opportunity Commission
Women in unions earn 38 percent more than
(EEOC) enforces the Equal Pay Act and other
women who aren't in unions. African American
laws barring discrimination. If you believe you
women union members earn 44 percent more
have been denied a job, paid less, passed over
than their nonunion counterparts. For Latina
for promotions or discriminated against in other
workers, it's 43 percent more. Union members
ways because of your sex, race or national
are likely to earn better benefits, too.
origin, you can file a complaint with the EEOC
Join the Working Women Working Together
office in your area. You don't need a lawyer.
Network, which is taking legal action where
To be connected with the EEOC office in your
appropriate, fighting for stronger laws and
area, call 1-800-669-4000.
winning equal pay through union bargaining.
To get more information on equal pay-and to make your voice heard-
call the Working Women Working Together Network at 1-888-971-9797.
Sources:
Jennifer Reingold, "Executive Pay," Business Week, Apr. 21, 1997, p. 58; Lake, Sosin, Snell, Perry & Associates, "AFL-CIO Ask A Working
Woman Survey" (Aug. and Oct. 1997); U.S. Department of Commerce, Bureau of the Census: Annual Demographic Survey, "Source of In-
come in 1996" and "Pension plan coverage of workers, by selected characteristics, sex, race and Hispanic origin, and poverty status: 1996"
(March 1997); Money Income in the United States: 1996, pp.60-197; Poverty in the United States: 1996, pp.60-198; U.S. Department of La-
bor: Bureau of Labor Statistics, Employment Earnings, Jan. 1997; "Union Members in 1996," Jan. 31, 1997; Facts on Working Women,
"Women of Hispanic Origin in the Labor Force" (Feb. 1997) and "Black Women in the Labor Force" (March 1997); Pension and Welfare
Benefits Administration, Retirement Benefits of American Workers. Sept. 1995.
3
WORKING
WOMEN
EQUAL
alert
Around the World, Women Earn Less
On every continent, more women are
In the U.S., about 33 percent of working women
working for pay than ever before.
hold low-wage jobs-compared to 20 percent of
In 1990, women were at least one-third of the
men.
workforce in most countries. Experts predict that,
by the year 2000, as many women will be working
In the United Kingdom, about 31 percent of work-
ing women hold low-wage jobs-compared to 13
as men.
percent of men.
In industrial countries, more women are working
for pay than ever before. In 1980, 53 percent of
In France, 25 percent of working women hold low-
wage jobs-8 percent of men do.
women of working age were in the workforce. By
1990, 60 percent were.
In Sweden, about 8 percent of working women
hold low-wage jobs-3 percent of men do.
But on every continent, women's pay lags
well behind men's.
Worldwide, women hold only 14 percent of admin-
istrative and managerial jobs and less than 6 per-
Worldwide, women earn an average of 75 percent of
cent of senior management jobs.
men's pay (this figure excludes agricultural work).
In Asia, for example, women in Bangladesh earn
One key result? Around the world, more
as little as 42 percent of what men earn and in Viet-
women than men live in poverty.
nam it's 92 percent. In Africa, women in the Syr-
Females account for 70 percent of the more than 1
ian Arab Republic earn only 60 percent of what
billion people who live in poverty.
men earn, and in Tanzania, women earn 92 percent
of men's earnings. In South America, Chile's
women earn 61 percent of what men earn, and Co-
The U.S. lags behind other industrialized
nations.
lombian women earn 85 percent of men's earnings.
In the United States, equal pay has been the law
Much of women's work-for example, caring for
since 1963. But women still earn only 74 percent
children or the elderly or doing agricultural work
of men's pay. The U.S. wage gap for women is
-is unpaid. In fact, around the world, women re-
worse than the wage gap for women in Australia,
ceive no wages for 66 percent of the work they do.
Austria, Germany, Italy, Norway and Sweden.
Women hold jobs at the bottom of the pay
The U.S. refuses to endorse international
scale.
agreements on equal pay.
Around the world. women are more likely than
The U.S. and Korea are the only industrialized na-
men to hold low-paying jobs:
tions that have failed to sign a 1951 international
resolution-the Equal Remuneration Convention
In Japan, about 37 percent of working women hold
of the International Labour Organization of the
low-wage jobs-compared to only 6 percent of
United Nations-endorsing the principle of equal
men.
pay for work of equal value.
to join the Working Women Working Together Network call toll-free 1-588-971-9797
The U.S. also has failed to ratify the 1979 United
We're sponsoring a national day of action and on-
Nations Convention for the Elimination of All
going activities across the country, supporting fair
Forms of Discrimination Against Women.
pay legislation and stepping up union bargaining
for equal pay.
The AFL-CIO supports equal pay for all
the world's women.
Unionized women earn 40 percent more than
women not in unions-and the wage gap between
We call on Congress to sign the international reso-
union women and union men is one-third smaller
lutions endorsing equal pay and to join us in call-
than for nonunion workers. If you're not earning
ing for an end to discrimination against women.
equal pay, ask your union for help. If you're not
in a union, form or join one!
To get more information on equal pay-and to make your voice heard, call:
The Working Women Working Together Network at 1-888-971-9797.
The Coalition of Labor Union Women at 202-466-4610.
The National Committee on Pay Equity at 202-331-7343.
This Equal Pay Alert was jointly published by the AFL-CIO Working Women's Department and the Coali-
tion of Labor Union Women in honor of International Women's Day.
Sources: Francine D. Blau and Lawrence M. Kahn. The Gender Earnings Gap: Some International Evidence, National Bureau of Economic
Research. December 1992. International Labour Organization, "Report III Part 2-List of Ratifications by Convention and by Country" (as
of 31 December 1996), International Labour Conference 85th Session 1997; "Women Work More, But Are Still Paid Less," August 25. 1995;
"Women Swell Ranks of Working Poor." World of Work, September/October 1996; Lin Lean Lim, More & Better Jobs for Women-An Action
Guide, 1996. National Committee on Pay Equity, Newsnotes, Winter 1996, citing UNDP Human Development Report, 1995, p. 36. Joni
Seager, The State of Women in the World Atlas, 1997; U.S. Department of Labor, Employment and Earnings, January 1998. United Nations
Development Program, Human Development Report 1997.
open#2 aff-cio
COMMITTEE
Z
JUSTICE
NATIONAL COMMITTEE
YOU CAN
Z
BANK ON
ON PAY EQUITY
EQUITY
1126 Sixteenth St, NW,
Washington, DC 20036
(202) 331-7343 FAX (202) 331-7406
STATEMENT OF SUSAN BIANCHI-SAND
EXECUTIVE DIRECTOR, NATIONAL COMMITTEE ON PAY EQUITY
WHITE HOUSE PRESS CONFERENCE ANNOUNCING EQUAL PAY INITIATIVES
APRIL 2, 1998
The National Committee For Pay Equity is the only organization established to fight sex- and
race-based wage discrimination. We talk to people fighting for equal pay every week.
Who are they?
They are lawyers, librarians, professors, basketball coaches, pastry chefs, insurance agents,
custodial workers, ministers and clerical staff.
They are virtually one half of the workforce. They help make our country run. They feed our
families. They are your wives, your daughters, your sisters, mothers and aunts.
What are their words about the pay gap?
The basketball coach says, "I am humiliated. I feel betrayed, backed into a corner." The
custodial worker tells us how sick and tired she is and sums it up as "unfair treatment, no money,
no mobility, no way out."
They describe their experiences as "extremely dehumanizing." A university professor confided: "I
risked the loss of my job, peer approval, and self-esteem. I was retaliated against."
Others express exasperation at the road blocks to information about pay. Another college
professor told us how she learned of her pay gap - through a budget outline left surreptitiously on
the Xerox machine.
Routinely, we hear stories about employer policies that threaten jobs if employees discuss their
wages. And those who go public and win the grueling fight in court tell us, "It should not be so
difficult for me or any other woman to get what is rightfully guaranteed by law."
These stories are confirmed by a recent Washington Post survey revealing how both men and
women believe that women face pay discrimination at work. The question remains, what are we
going to do about it?
Tomorrow, thousands of women will mobilize for Equal Pay Day, the day into the new year that a
woman must work to earn the wages paid to a man in the previous year. Working with our
national partner, the AFL-CIO, we are coordinating over 650 activities in all 50 states.
Printing Courtesy of Service Employees International Union, AFL-CIO CI.
4477
6300
In South Carolina, members of Business and Professional Women/USA tell us they plan a
statewide march to the Capitol. In Illinois, women will sing "Close the Wage Gap," to the tune of
"Hit the Road Jack" at the Palatine train station. In California, women will wear red purses to
illustrate that women's pay is in the red; in Massachusetts, women have organized an educational
panel discussion for 250 students at Boston University. In Denver, union women and others will
hold a press conference at the oldest brew pub in the city -- where they will also enjoy a 26%
discount for lunch when they mention Equal Pay Day. In Georgia, women will hold a rally at the
statehouse. Even in Sherman Texas, women have organized a 26¢ discount on beverages at
Kelly's restaurant.
State, local, and county officials in 20 states will sign proclamations valuing women's work.
Activists will hand out Equal Pay Day candy bars, hold press conferences and luncheons, wear
buttons, and even head down to the bank to deposit 74c.
In every corner of America -- from Plattsburgh, New York to Green Bay, Wisconsin to Honolulu,
Hawaii -- women will stand up and demand, "Where's My 26¢?" Yes, equal pay is a top concern
for women. Why are these women organizing?
It's been 35 years since the passage of the Equal Pay Act. Yet, progress in closing the wage gap
remains painfully slow -- at a rate of less than half a penny a year. In 1963, the wage gap was
59¢ to the dollar. Today, it stands at 74c. That's not a lot of change. Worse yet, much of this
"progress" is due to men's wages falling.
Today, the average woman loses $8,500 annually due to the wage gap. If nothing changes, a
woman will lose $523,000 over her career. And what will be the impact in her old age? As one
woman minister put it, after 17 years and continued demands for fair pay, her board of pensions
informed her that she had earned only $7,000 toward retirement.
The wage gap doesn't discriminate -- it reaches every woman, regardless of economic and
educational status. A female lawyer fresh out of school entering the workplace will earn about
$7,000 less than her male counterpart. A woman in investor relations earns only 62¢ on the
dollar. In accounting -- a growing field for women -- women earn 27% less than men. The gap
for women in retail sales is 32%. Even male social workers make more than female social
workers.
1996 Census Bureau numbers underscore an unacceptable disparity for women with college
educations. Overall, a female college graduate earns $13,250 less than men with the same degree,
and only $1,800 more than a male high school graduate. For a Black or Hispanic college
educated woman, the situation is even worse. For instance, how do we explain to an African-
American woman that her college degree yields a paycheck only equivalent to a white male high
school graduate? As a nation, we should be outraged that this investment in human capital is so
poorly rewarded.
To close the wage gap, clearly more must be done. Enforcement must be strengthened,
retaliation curbed, and information on pay practices disclosed. NCPE is in full support of the
critically significant legislation introduced by Senator Daschle and the precedent-setting initiatives
undertaken by the White House. In taking these steps, the leadership of our country has placed
the wage gap on the national agenda -- exactly where it belongs.
National Committee on Pay Equity
Tips For the Workplace
Remember the 4 R's
Recognize the wage gap exists.
Don't be in denial. Women, regardless of economic or educational status, experience
pay discrepancies.
Be mindful that your point of entry on the wage scale affects your pension, promotions
and pay raises.
While laws exist to combat pay inequity, personal awareness and education can help
correct the problem early.
Research wages in your field.
Search out job specific salary surveys in your chosen field. Professional associations,
trade journals, headhunters, women's organizations, plus local and state commissions
for women are resources. Look on the Internet, at your local library, in business
schools, and in the want ads.
Request your company to provide general wage categories or salary ranges for
different positions.
Join a search committee for another job your company is trying to fill -- this may give
you salary information which may be useful.
Rehearse your message.
Practice saying, "I am worth more than that!" Then use it! Let your value be known.
Speak to the skill, effort, responsibility, and working conditions of your job.
Use strong words such as lead, manage, execute, and implement.
Describe your value and contributions. How much money did you save the business?
How many problems did you resolve? How many positive evaluations do you have?
Reorganize the workplace.
Talk to other women in your company and gather support. If you feel underpaid or
undervalued, others do, too.
Remind others that fair pay practices are good for business: they attract and retain the
best employees.
Unionized workers experience less of a wage gap. If you are not in a union, consider
joining one. Contact the Coalition of Labor Union Women or the AFL-CIO.
National Committee on Pay Equity. Tip Sheet. April 1998.
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THE WAGE GAP: 1996
1996 MEDIAN ANNUAL EARNINGS YEAR-ROUND,
FULL-TIME WORKERS
NOTES:
The wage gap is a statistical indicator often used
Wage Gap: 73.8%
as an index of the status of women's earnings relative
to men's. It is also used to compare the carnings of
people of color to those of White men.
$32,144
$35,000
The wage gap is expressed as a percentage (for
$30,000
$23,710
example, in 1996, women earned 74 percent as much
Median Annual Earnings
$25,000
as men) and is calculated by dividing median annual
$20,000
carnings for women by median annual earnings for
men.
$15,000
$10,000
To calculate the wage gap for each race/sex
group, median annual earnings are divided by those of
$5,000
White males, who are not subject to race-or sex-based
$0
wage discrimination.
Men
Women
Earnings data for Asian/Pacific Islanders and
Native Americans are not available.
Statistics are from the Census Burcau Current
1996 MEDIAN ANNUAL EARNINGS
Population Reports, Scries P-60, U.S. Commerce
BY RACE AND SEX
Department.
THE WAGE GAP: 1996
BY RACE AND SEX
$35,000
$32,966
100%
100.00%
$30,000
$26,404
90.00%
$24,160
80%
$25,000
80.00%
73.3%
$21,473
Median Annual Earnings
$21,056
Earnings as a Percentage of White
63.9%
65.1%
$18,665
70.00%
$20,000
56.6%
Men
60.00%
$15,000
Women
Male
50.00%
Men
40.00%
Women
$10,000
30.00%
20.00%
$5,000
10.00%
$0
0.00%
Hispanic
Black
White
Hispanic
Black
White
4477 6300
Printing Country " Service Employees International Joion, APL-CIO CLC
CHANGES IN THE WAGE GAP, 1970 - 1996
MEDIAN ANNUAL EARNINGS OF BLACK MEN AND WOMEN,
HISPANIC MEN AND WOMEN, AND WHITE WOMEN AS A
PERCENTAGE OF WHITE MEN'S MEDIAN ANNUAL EARNINGS
YEAR
WHITE
BLACK
HISPANIC
WHITE
BLACK
HISPANIC
MEN
MEN
MEN
WOMEN
WOMEN
WOMEN
1970
100%
69.00%
N/A
58.70%
48.20%
N/A
1975
100%
74.30%
72.10%
57.50%
55.40%
49.30%
1980
100%
70.70%
70.80%
58.90%
55.70%
50.50%
1985
100%
69.70%
68.00%
63.00%
57.10%
52.10%
1990
100%
73.10%
66.30%
69.40%
62.50%
54.30%
1992
100%
72.60%
63.35%
70.00%
64.00%
55.40%
1994
100%
75.10%
64.30%
71.60%
63.00%
55.60%
1995
100%
75.90%
63.30%
71.20%
64.20%
53.40%
1996
100%
80.00%
63.90%
73.30%
65.10%
56.60%
THE WAGE GAP SINCE 1960: 36 YEARS LATER, STILL 26 PERCENT BEHIND
Median Earnings of Year-Round, Full-Time Workers by Sex: 1960 to 1996
40
35
Earnings in 1996 Dollars. (Shown in
30
25
thousands.)
20
15
Men
Women
10
5
0
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
Years
Over a 36 year period, the gap, in 1996 dollars, between women's and men's earnings has only closed by about $2,000.
Data from the Census Bureau, 1996
The National Committee on Pay Equity is a national membership coalition of over 200 organizations, including labor unions, women's and civil
rights organizations, religious, local, educational and professional associations, state and local pay equity networks, and individuals working to
climinate sex and race-based wage discrimination and to achieve pay equity.
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Questions and Answers about
Equal Pay Day
April 3, 1998
What is Equal Pay Day?
Each year, the National Committee on Pay Equity (NCPE) organizes the national observance of Equal
Pay Day, the day into the new year that a woman must work to earn the wages paid to a man in the
previous year. In 1998, Equal Pay Day is April 3rd. The date is calculated with current U.S. Census
Bureau data showing that the earnings of women are only 74% of the earnings for men. This year,
NCPE is partnering with the AFL-CIO, whose recent survey of 50,000 working women demonstrated
that equal pay is the top concern of women in the workforce.
What happened last year on Equal Pay Day?
In 1997 on Equal Pay Day (then called Pay Inequity Day), 107 women's business and professional
associations, labor groups, and civil rights organizations from 38 states raised awareness of pay
inequity. Women held rallies, press conferences, workshops, awards luncheons, essay contests and
more. Proclamations were issued by mayors, state legislatures, county councils and judges, and
President Clinton (for the second year in a row). Women also worked with local proprietors to arrange
discounts (reflective of the wage gap) on selected items. One group even offered a "Fair Pay Donut
Dollar" which patrons could exchange for a Fair Pay Donut, size in proportion to men's and women's
earnings. Other activities included an appreciation reception for female workers at Wal*Mart and
passing out buttons and literature at subways and town squares.
What's on tap for this year?
This year on April 3rd, grassroots organizing on fair pay will sweep the nation. Over 500 groups, or
"partners," from 50 states will hold Equal Pay Day activities in their hometowns. In addition to rallies
and press conferences, ideas include organizing a ten-minute break at 2:55 p.m., the 74% mark in the
work day (because at this point, most men have already earned all the money that women earn in a full
eight hour work day), holding a networking workshop to discuss "How to Ask for a Raise," passing out
replicated dollar bills with holes in them to reflect the hole in women's paychecks, and more. In some
areas, women will carry red purses to illustrate that women's pay is "in the red."
What will be going on in Washington, D.C. on Equal Pay Day?
At a press conference at the White House on April 2nd, Vice President Gore will announce policy
initiatives to close the wage gap.
4477
S
6300
Printing Courtesy of Service Employees International Union, APL-CIO,CLC
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The Wage Gap Over Time:
In Real Dollars,
Women See Little Change
Since 1963, the closing of the wage gap has been at
a rate of less than half a penny a year.
Over 35 years, a woman's earnings have fallen
short by an average of $440,047.
On an annual basis, this amounts to approximately
$12,573.
Please see reverse side for actual figures.
Printing Country of Service Employees International Union, AFL-CIC (11
4477
6300
Women's Earnings as a Percentage of Men's Earnings
1960-1996 (in 1996 Dollars)
Year
Women's
Men's
Dollar
Percent
Earnings
Earnings
Difference
1996
$23,710
$32,144
$8,434
74
1995
$23,161
$32,426
$9,265
71
1994
$23,509
$32,665
$9,156
72
1993
$23,613
$33,016
$9,403
72
1992
$23,904
$33,770
$9,866
71
1991
$23,677
$33,892
$10,215
70
1990
$23,795
$33,226
$9,431
72
1989
$23,749
$34,583
$10,834
69
1988
$23,351
$35,354
$12,003
66
1987
$23,357
$35,836
$12,479
65
1986
$23,237
$36,156
$12,919
64
1985
$22,783
$35,281
$12,498
65
1984
$22,319
$35,062
$12,743
64
1983
$21,920
$34,469
$12,549
64
1982
$21,359
$34,592
$13,233
62
1981
$20,899
$35,281
$14,382
59
1980
$21,346
$35,483
$14,137
60
1979
$21,523
$36,074
$14,551
60
1978
$21,734
$36,564
$14,830
59
1977
$21,395
$36,310
$14,915
59
1976
$21,393
$35,540
$14,147
60
1975
$20,950
$35,618
$14,668
59
1974
$21,071
$35,863
$14,792
59
1973
$21,059
$37,184
$16,125
57
1972
$20,860
$36,052
$15,192
58
1971
$20,361
$34,216
$13,855
60
1970
$20,222
$34,062
$13,840
59
1969
$19,820
$33,670
$13,850
59
1968
$18,549
$31,896
$13,347
58
1967
$17,938
$31,043
$13,105
58
1966
$17,589
$30,560
$12,971
58
1965
$17,562
$29,306
$11,744
60
1964
$17,082
$28,880
$11,798
59
1963
$16,609
$28,176
$11,567
59
1962
$16,321
$27,524
$11,203
59
1961
$16,004
$27,011
$11,007
59
1960
$15,870
$26,156
$10,286
61
National Partnership
for Women & Families
News Release
FOR RELEASE:
CONTACT: Lauren Asher, Margaret Sotham
Thursday, April 2, 1998
202/986-2600
(Equal Pay Day is April 3)
IT'S TIME TO FULFILL THE PROMISE OF EQUAL PAY FOR EQUAL WORK
Statement for Equal Pay Day by Judith L. Lichtman, President
National Partnership for Women & Families
Paying women less for doing the same jobs as men has been illegal in principle since the Equal Pay
Act of 1963, but the gap between principle and practice remains as large as the pay gap still facing
women today.
Unfortunately, poor enforcement of existing laws, weak penalties for those who break them, and
inadequate information - both from employers and for employees still stand in the way of
achieving fair pay. That's why the National Partnership for Women & Families supports passage of
the Paycheck Fairness Act (PFA). By making employers who discriminate pay serious damages, by
giving federal enforcement agencies the resources to do their job, and by making it easier for women
to find out if their pay is fair (and what they can do about it), the PFA would help fulfill the long-
overdue promise of equal pay for equal work.
Our recently released poll, FAMILY MATTERS,* found that most women and men think we still
have a long way to go before women get the fair pay and fair treatment they deserve.
Across all age groups, income levels, races, and party affiliations, a majority of American
women say employers are not doing a good job of "treating women fairly for pay and
promotions." Just 36% of women and 46% of men think employers are doing a good job.
But they have high expectations for the future: two-thirds of both women and men expect
improvements in the next five years.
On Equal Pay Day, we call upon both Congress and the nation's employers to fulfill the promise. of
equal pay for equal work.
The National Partnership for Women & Families (formerly the Women's Legal Defense Fund) is a nonprofit,
nonpartisan organization that promotes fairness in the workplace, quality health care, and policies that help women
and men meet the dual demands of work and family. For more information about workplace fairness and other
issues that matter to women and families, see the National Partnership's web site at www.nationalpartnership.org-
*
FAMILY MATTERS: A National Survey of Women and Men, was a random telephone survey conducted by Lake
Sosin Snell Perry and Associates from January 28 to February I, 1998. It reached 1,115 adults 18 years or older
nationwide. The margin of sampling error for the full sample is +/-3.1 percent.
####
1875 Connecticut Avenue, NW / Suite 710 / Washington, DC 20009 / 202.986.2600 / Fax: 202.986.2539 / Web Site: http://www.nationalpartnership.org
Communications Unit
ACU
Fax: (202) 546-1440
122 Maryland Avenue, NE
Email: [email protected]
W ington, DC 20002
Web: www.aclu.org
(202) 675-2312
AOL keyword "ACLU"
WASHINGTON NATIONAL OFFICE
LEASE NEWS RELEASE NEWS RELEASE NEWS RELEAS
ACLU Calls on Congress to Close Wage Gap
As the Nation Observes Equal Pay Day
Statement of Kathryn Engustian, ACLU Legislative Counsel
FOR IMMEDIATE RELEASE
Contact: Phil Gutis
Thursday, April 2, 1998
(202) 675-2312
WASHINGTON The American Civil Liberties Union joins today with women across America in observing
National Equal Pay Day and calls on Congress to address the issue of wage discrimination and help eliminate the
income gap that still exists three decades after the enactment of the Equal Pay Act.
National Equal Pay Day is marked on the day when women's earnings thus far in 1998, added to their 1997
earnings, finally equal what men earned in 1997 alone. According to the federal government, women earn only
73.8 cents for every dollar earned by men. For white women, the figure is 73.3 cents, for black women, 65.1
cents, and for Hispanic women, 56.6 cents.
Too many women and people of color are shortchanged at work. Unfair and discriminatory wage practices lead
to a smaller paycheck, and often create long term economic insecurity for families. Relatively few occupations
are truly integrated. The majority of women and people of color are still concentrated in the service sector,
nursing and teaching. Studies show that the more an occupation is dominated by women and people of color the
less it pays. Addressing the systematic wage discrimination inherent in a segregated workforce is essential to
improving the welfare of women and minorities.
The Equal Pay Act of 1963 requires equal pay for equal work and applies only to gender-based discrimination.
To confront the pay disparities that persist in the 90's, we need broader legislation that would require equal pay
for comparable work - work that is equivalent in skill, effort, responsibility, and working conditions - and that
would prohibit wage disparities based not only on gender but also on race and/or national origin.
For workers struggling to support themselves and their families, equitable pay legislation is particularly critical.
Many families rely heavily, and some exclusively, on women's wages. When women and minorities are not paid
what they are worth, they are not the only ones who lose. Every member of their families is cheated as well.
Lower wages means not only less buying power now but also less retirement security in the future.
By enacting welfare reform legislation, our federal government has required those receiving public assistance to
move from "welfare to work." But increasing participation in the workforce will do little to decrease poverty
and improve the economic security of families unless the federal government also ensures that every worker is
equitably paid. We urge Congress to guarantee that women and people of color earn fair and equal wages for
their valuable work and contributions to our economy by expeditiously passing fair pay legislation.
###
Coalition of
Labor Union Women
1126 16th Street, NW
Washington, D.C. 20036
(202) 466-4610
Fax (202) 776-0537
FOR IMMEDIATE RELEASE:
CONTACT:
March 26, 1998
Chrystl L. Bridgeforth
(202) 466-4610
CONTINUING THE FIGHT FOR PAY EQUITY
-Union women draw attention to "Equal Pay Day", April 3-
WASHINGTON- "From company board rooms to the halls of Congress, union women have
continued to fight for equal pay for over 25 years," said Coalition of Labor Union Women (CLUW)
President Gloria Johnson on behalf of National Equal Pay Day, April 3rd.
CLUW represents 20,000 active union members in local chapters throughout the nation which will
hold many events this week to draw attention to the fact that women only earn slightly over 74 cents
to each dollar by their male counterparts. Its event lower for women of color.
Johnson explained, "In 1963, President Kennedy signed the Equal Pay Act, which prohibits employers
from paying men more than women who perform the same job. A quarter-century later, fair pay
continues to be a major issue for working women and their families."
Johnson said, "Back then and today, raising women's wages is an effective anti-poverty strategy.
But anti-worker lobbying interests continue to fight mandates that would raise living standard,"
Unlike the world 25 years ago, more women today are the sole support system for their families.
Two-thirds of the women in the U.S. workforce are single, divorced, widowed or have husbands who
earn less than $15,000 a year, according to figures released by the National Committee on Pay
Equity.
Johnson is critical of those who say pay equity costs businesses too much. "In Minnesota, a state that
passed pay equity legislation for its employees, less than 1 percent of the state's payroll budget was
needed to give raises to 30,000 employees," she said.
Johnson feels the social costs are immeasurable. "Pay equity helps women become self-sufficient and
overcome their reliance on government sustenance programs like food stamps and welfare. No full-
time worker should be subject to life of poverty. Without pay equity, too many women are."
Among other factors worrisome to CLUW is retirement security. "As the nation grapples with
retirement issues such as the future solvency of Social Security, working women worried about the
solvency of family budgets need pay equity to save anything for their futures," remarked Johnson.
-more-
News Release
Equal Pay Day/Page 2
For minorities, Johnson explains, the problem is worse. "Women of color face greater injustice with
African-Americans earning 65 cents and Hispanics 57 cents to each dollar earned by males."
"From the shores of New Jersey to the Golden Gate Bridge, CLUW members are sending messages
to their employers and their representatives in Congress that equal pay must be a top priority," she
said.
"They are telling lawmakers to beef up enforcement of the Equal Pay Act and make it illegal for
employers to forbid workers from sharing wage information. They are telling their bosses to create
remedies for wage discrimination and to implement fair pay practices." But most importantly
according to Johnson, they 're telling other concerned women to join the fight."
####
PAGE
2
4TH DOCUMENT of Level 1 printed in FULL format.
FULL TEXT OF BILLS
105TH CONGRESS; 1ST SESSION
IN THE SENATE OF THE UNITED STATES
AS INTRODUCED IN THE SENATE
S. 232
1997 S. 232; 105 S. 232
<=1> Retrieve Bill Tracking Report
SYNOPSIS:
A BILL To amend the Fair Labor Standards Act of 1938 to prohibit discrimination
in the payment of wages on account of sex, race, or national origin, and for
other purposes.
DATE OF INTRODUCTION: JANUARY 29, 1997
DATE OF VERSION: JANUARY 30, 1997
- - VERSION: 1
SPONSOR (S) :
Mr. HARKIN (for himself, Mr. LEAHY, Mrs. BOXER, Mrs. MURRAY, Mr. INOUYE,
Ms. MIKULSKI, and Mr. KERRY) introduced the following bill; which was
read twice and referred to the Committee on Labor and Human Resources
TEXT:
* Be it enacted by the Senate and House of Representatives of the United*
*States of America in Congress assembled,
*
SECTION 1. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE. THIS ACT MAY BE CITED AS THE "FAIR PAY ACT OF 1997".
(B) REFERENCE. EXCEPT AS PROVIDED IN SECTION 8, WHENEVER IN THIS ACT AN
AMENDMENT OR REPEAL IS EXPRESSED IN TERMS OF AN AMENDMENT TO, OR REPEAL
OF, A SECTION OR OTHER PROVISION, THE REFERENCE SHALL BE CONSIDERED TO BE
MADE TO A SECTION OR OTHER PROVISION OF THE FAIR LABOR STANDARDS ACT OF
1938 (29 U.S.C. 201 ET SEQ.).
SEC. 2. FINDINGS.
Congress finds the following:
(1) Wage rate differentials exist between equivalent jobs
segregated by sex, race, and national origin in Government employment
and in industries engaged in commerce or in the production of goods
for commerce.
(2) The existence of such wage rate differentials-
(A) depresses wages and living standards for employees
necessary for their health and efficiency;
(B) prevents the maximum utilization of the available labor
resources;
(C) tends to cause labor disputes, thereby burdening,
affecting, and obstructing commerce;
(D) burdens commerce and the free flow of goods in commerce;
and
(E) constitutes an unfair method of competition.
(3) Discrimination in hiring and promotion has played a role in
maintaining a segregated work force.
PAGE
3
S. 232 JANUARY 30, 1997
VERSION: 1
(4) Many women and people of color work in occupations dominated by
individuals of their same sex, race, and national origin.
(5) (A) A General Accounting Office analysis of wage rates in the
civil service of the State of Washington found that in 1985 of the 44
jobs studied that paid less than the average of all equivalent jobs,
approximately 39 percent were female-dominated and approximately 16
percent were male dominated.
(B) A study of wage rates in Minnesota using 1990 Decennial Census
data found that 75 percent of the wage rate differential between
white and non-white workers was unexplained and may be a result of
discrimination.
(6) Section 6 (d) of the Fair Labor Standards Act of 1938 prohibits
discrimination in compensation for "equal work" on the basis of sex.
(7) Title VII of the Civil Rights Act of 1964 prohibits
discrimination in compensation because of race, color, religion,
national origin, and sex. The Supreme Court, in its decision in
County of Washington V. Gunther, 452 U.S. 161 (1981), held that title
VII's prohibition against discrimination in compensation also applies
to jobs that do not constitute "equal work" as defined in section
6 (d) of the Fair Labor Standards Act of 1938. Decisions of lower
courts, however, have demonstrated that further clarification of
existing legislation is necessary in order effectively to carry out
the intent of Congress to implement the Supreme Court's holding in
its Gunther decision.
(8) Artificial barriers to the elimination of discrimination in
compensation based upon sex, race, and national origin continue to
exist more than 3 decades after the passage of section 6 (d) of the
Fair Labor Standards Act of 1938 and the Civil Rights Act of 1964.
Elimination of such barriers would have positive effects, including-
(A) providing a solution to problems in the economy created by
discrimination through wage rate differentials;
(B) substantially reducing the number of working women and
people of color earning low wages, thereby reducing the
dependence on public assistance; and
(C) promoting stable families by enabling working family
members to earn a fair rate of pay.
SEC. 3. EQUAL PAY FOR EQUIVALENT JOBS.
(a) AMENDMENT -SECTION 6 (29 U.S.C. 206) IS AMENDED BY ADDING AT THE
END THE FOLLOWING:
" (H) (1) (A) (I) EXCEPT AS PROVIDED IN CLAUSE (II), NO EMPLOYER HAVING
6(h)
EMPLOYEES SUBJECT TO ANY PROVISION OF THIS SECTION SHALL DISCRIMINATE,
WITHIN ANY ESTABLISHMENT IN WHICH SUCH EMPLOYEES ARE EMPLOYED, BETWEEN
EMPLOYEES ON THE BASIS OF SEX, RACE, OR NATIONAL ORIGIN BY PAYING WAGES
TO EMPLOYEES IN SUCH ESTABLISHMENT IN A JOB THAT IS DOMINATED BY
EMPLOYEES OF A PARTICULAR SEX, RACE, OR NATIONAL ORIGIN AT A RATE LESS
THAN THE RATE AT WHICH THE EMPLOYER PAYS WAGES TO EMPLOYEES IN SUCH
ESTABLISHMENT IN ANOTHER JOB THAT IS DOMINATED BY EMPLOYEES OF THE
OPPOSITE SEX OR OF A DIFFERENT RACE OR NATIONAL ORIGIN, RESPECTIVELY, FOR
WORK ON EQUIVALENT JOBS.
" (II) NOTHING IN CLAUSE (I) SHALL PROHIBIT THE PAYMENT OF DIFFERENT
WAGE RATES TO EMPLOYEES WHERE SUCH PAYMENT IS MADE PURSUANT TO-
" (I) A SENIORITY SYSTEM;
" (II) A MERIT SYSTEM; OR
" (III) A SYSTEM THAT MEASURES EARNINGS BY QUANTITY OR QUALITY OF
PRODUCTION.
PAGE
4
S. 232 JANUARY 30, 1997
- - VERSION: 1
" (III) THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SHALL ISSUE
GUIDELINES SPECIFYING CRITERIA FOR DETERMINING WHETHER A JOB IS DOMINATED
BY EMPLOYEES OF A PARTICULAR SEX, RACE, OR NATIONAL ORIGIN. SUCH
GUIDELINES SHALL NOT INCLUDE A LIST OF SUCH JOBS.
" (B) AN EMPLOYER WHO IS PAYING A WAGE RATE DIFFERENTIAL IN VIOLATION OF
SUBPARAGRAPH (A) SHALL NOT, IN ORDER TO COMPLY WITH THE PROVISIONS OF
SUCH SUBPARAGRAPH, REDUCE THE WAGE RATE OF ANY EMPLOYEE.
" (2) NO LABOR ORGANIZATION OR ITS AGENTS REPRESENTING EMPLOYEES OF AN
EMPLOYER HAVING EMPLOYEES SUBJECT TO ANY PROVISION OF THIS SECTION SHALL
CAUSE OR ATTEMPT TO CAUSE SUCH AN EMPLOYER TO DISCRIMINATE AGAINST AN
EMPLOYEE IN VIOLATION OF PARAGRAPH (1) (A).
" (3) FOR PURPOSES OF ADMINISTRATION AND ENFORCEMENT OF THIS SUBSECTION,
ANY AMOUNTS OWING TO ANY EMPLOYEE THAT HAVE BEEN WITHHELD IN VIOLATION OF
PARAGRAPH (1) (A) SHALL BE DEEMED TO BE UNPAID MINIMUM WAGES OR UNPAID
OVERTIME COMPENSATION UNDER THIS SECTION OR SECTION 7.
" (4) AS USED IN THIS SUBSECTION:
" (A) THE TERM 'LABOR ORGANIZATION' MEANS ANY ORGANIZATION OF ANY
KIND, OR ANY AGENCY OR EMPLOYEE REPRESENTATION COMMITTEE OR PLAN, IN
WHICH EMPLOYEES PARTICIPATE AND WHICH EXISTS FOR THE PURPOSE, IN
WHOLE OR IN PART, OF DEALING WITH EMPLOYERS CONCERNING GRIEVANCES,
LABOR DISPUTES, WAGES, RATES OF PAY, HOURS OF EMPLOYMENT, OR
CONDITIONS OF WORK.
" (B) THE TERM 'EQUIVALENT JOBS' MEANS JOBS THAT MAY BE DISSIMILAR,
BUT WHOSE REQUIREMENTS ARE EQUIVALENT, WHEN VIEWED AS A COMPOSITE OF
SKILLS, EFFORT, RESPONSIBILITY, AND WORKING CONDITIONS.
(B) CONFORMING AMENDMENT. -SECTION 13 (A) (29 U.S.C. 213 (A) IS AMENDED
IN THE MATTER BEFORE PARAGRAPH (1) BY STRIKING "SECTION 6 (D) AND
INSERTING "SECTIONS 6 (D) AND 6(H)".
SEC. 4. PROHIBITED ACTS.
Section 15 (a) (29 U.S.C. 215 (a) ) is amended-
(1) by striking the period at the end of paragraph (5) and
inserting a semicolon; and
(2) by adding after paragraph (5) the following new paragraphs:
" (6) to discriminate against any individual because such individual
has opposed any act or practice made unlawful by section 6 (h) or
NoN RetaliatioN
because such individual made a charge, testified, assisted, or
participated in any manner in an investigation, proceeding, or
hearing to enforce section 6 (h) or
" (7) to discharge or in any other manner discriminate against,
coerce, intimidate, threaten, or interfere with any employee or any
other person because the employee inquired about, disclosed,
compared, or otherwise discussed the employee's wages or the wages of
any other employee, or because the employee exercised, enjoyed,
aided, or encouraged any other person to exercise or enjoy any right
granted or protected by section 6 (h) .".
SEC. 5. REMEDIES.
Section 16 (29 U.S.C. 216) is amended-
(1) by adding at the end the following:
" (f) In any action brought under this section for violation of section
6 (h), the court shall, in addition to any other remedies awarded to the
prevailing plaintiff or plaintiffs, allow expert fees as part of the
costs. Any such action may be maintained as a class action as provided by
the Federal Rules of Civil Procedure."
(2) in subsection (b), by striking "section 15 (a) (3) II each place it
occurs and inserting "paragraphs (3), (6), and (7) of section 15 (a)
PAGE
5
S. 232 JANUARY 30, 1997
-- VERSION: 1
and
(3) in the fourth sentence of subsection (b), by striking "No
employees" and inserting "Except with respect to class actions
brought under subsection (f), no employees".
SEC. 6. RECORDS.
(a) TECHNICAL AMENDMENT. SECTION 11 (C) (29 U.S.C. 211 (C) IS AMENDED BY
INSERTING " (1) " AFTER " (C)
(b) RECORDS -SECTION 11 (C) (AS AMENDED BY SUBSECTION (A)) IS FURTHER
AMENDED BY ADDING AT THE END THE FOLLOWING:
" (2) (A) EVERY EMPLOYER SUBJECT TO SECTION 6 (H) SHALL PRESERVE RECORDS
THAT DOCUMENT AND SUPPORT THE METHOD, SYSTEM, CALCULATIONS, AND OTHER
BASES USED BY THE EMPLOYER IN ESTABLISHING, ADJUSTING, AND DETERMINING
THE WAGE RATES PAID TO THE EMPLOYEES OF THE EMPLOYER. EVERY EMPLOYER
SUBJECT TO SECTION 6 (H) SHALL PRESERVE SUCH RECORDS FOR SUCH PERIODS OF
TIME, AND SHALL MAKE SUCH REPORTS FROM THE RECORDS TO THE EQUAL
EMPLOYMENT OPPORTUNITY COMMISSION, AS SHALL BE PRESCRIBED BY THE EQUAL
EMPLOYMENT OPPORTUNITY COMMISSION BY REGULATION OR ORDER AS NECESSARY OR
APPROPRIATE FOR THE ENFORCEMENT OF THE PROVISIONS OF SECTION 6 (H) OR ANY
REGULATION PROMULGATED PURSUANT TO SECTION 6 (H) .".
(C) SMALL BUSINESS EXEMPTIONS. SECTION 11 (C) (AS AMENDED BY SUBSECTIONS
(A) AND (B) IS FURTHER AMENDED BY ADDING AT THE END THE FOLLOWING:
II (B) (I) EVERY EMPLOYER SUBJECT TO SECTION 6 (H) THAT HAS 25 OR MORE
EMPLOYEES ON ANY DATE DURING THE FIRST OR SECOND YEAR AFTER THE EFFECTIVE
DATE OF THIS PARAGRAPH, OR 15 OR MORE EMPLOYEES ON ANY DATE DURING ANY
SUBSEQUENT YEAR AFTER SUCH SECOND YEAR, SHALL, IN ACCORDANCE WITH
REGULATIONS PROMULGATED BY THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
UNDER SUBPARAGRAPH (F), PREPARE AND SUBMIT TO THE EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION FOR THE YEAR INVOLVED A REPORT SIGNED BY THE
PRESIDENT, TREASURER, OR CORRESPONDING PRINCIPAL OFFICER, OF THE EMPLOYER
THAT INCLUDES INFORMATION THAT DISCLOSES THE WAGE RATES PAID TO EMPLOYEES
OF THE EMPLOYER IN EACH CLASSIFICATION, POSITION, OR JOB TITLE, OR TO
EMPLOYEES IN OTHER WAGE GROUPS EMPLOYED BY THE EMPLOYER, INCLUDING
INFORMATION WITH RESPECT TO THE SEX, RACE, AND NATIONAL ORIGIN OF
EMPLOYEES AT EACH WAGE RATE IN EACH CLASSIFICATION, POSITION, JOB TITLE,
OR OTHER WAGE GROUP.
(D) PROTECTION OF CONFIDENTIALITY. SECTION 11 (C) (AS AMENDED BY
SUBSECTIONS (A) THROUGH (C)) IS FURTHER AMENDED BY ADDING AT THE END THE
FOLLOWING:
(II) THE RULES AND REGULATIONS PROMULGATED BY THE EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION UNDER SUBPARAGRAPH (F), RELATING TO THE FORM OF
SUCH A REPORT, SHALL INCLUDE REQUIREMENTS TO PROTECT THE CONFIDENTIALITY
OF EMPLOYEES, INCLUDING A REQUIREMENT THAT THE REPORT SHALL NOT CONTAIN
THE NAME OF ANY INDIVIDUAL EMPLOYEE.
(E) USE; INSPECTIONS; EXAMINATIONS; REGULATIONS. SECTION 11 (C) (AS
AMENDED BY SUBSECTIONS (A) THROUGH (D) ) IS FURTHER AMENDED BY ADDING AT
THE END THE FOLLOWING:
"
(C) THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION MAY PUBLISH ANY
EEOC the may publish
INFORMATION AND DATA THAT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
OBTAINS PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (B) THE EQUAL
EMPLOYMENT OPPORTUNITY COMMISSION MAY USE THE INFORMATION AND DATA FOR
STATISTICAL AND RESEARCH PURPOSES, AND COMPILE AND PUBLISH SUCH STUDIES,
ANALYSES, REPORTS, AND SURVEYS BASED ON THE INFORMATION AND DATA AS THE
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION MAY CONSIDER APPROPRIATE.
(D) IN ORDER TO CARRY OUT THE PURPOSES OF THIS ACT, THE EQUAL
EMPLOYMENT OPPORTUNITY COMMISSION SHALL BY REGULATION MAKE REASONABLE
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S. 232 JANUARY 30, 1997
-- VERSION: 1
PROVISION FOR THE INSPECTION AND EXAMINATION BY ANY PERSON OF THE
INFORMATION AND DATA CONTAINED IN ANY REPORT SUBMITTED TO THE EQUAL
EMPLOYMENT OPPORTUNITY COMMISSION PURSUANT TO SUBPARAGRAPH (B).
II (E) THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SHALL BY REGULATION
PROVIDE FOR THE FURNISHING OF COPIES OF REPORTS SUBMITTED TO THE EQUAL
EMPLOYMENT OPPORTUNITY COMMISSION PURSUANT TO SUBPARAGRAPH (B) TO ANY
PERSON UPON PAYMENT OF A CHARGE BASED UPON THE COST OF THE SERVICE.
" (F) THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SHALL ISSUE RULES AND
REGULATIONS PRESCRIBING THE FORM
and content of reports required to be submitted under subparagraph (B)
and such other reasonable rules and regulations as the Equal Employment
Opportunity Commission may find necessary to prevent the circumvention or
evasion of such reporting requirements. In exercising the authority of
the Equal Employment Opportunity Commission under subparagraph (B), the
Equal Employment Opportunity Commission may prescribe by general rule
simplified reports for employers for whom the Equal Employment
Opportunity Commission finds that because of the size of the employers a
detailed report would be unduly burdensome
SEC. 7. RESEARCH, EDUCATION, AND TECHNICAL ASSISTANCE PROGRAM; REPORT TO
CONGRESS.
Section 4 (d) (29 U.S.C. 204 (d) ) is amended by adding at the end the
following:
(4) The Equal Employment Opportunity Commission shall conduct studies
and provide information and technical assistance to employers, labor
organizations, and the general public concerning effective means
available to implement the provisions of section 6 (h) prohibiting wage
rate discrimination between employees performing work in equivalent jobs
on the basis of sex, race, or national origin. Such studies, information,
and technical assistance shall be based on and include reference to the
objectives of such section to eliminate such discrimination. In order to
achieve the objectives of such section, the Equal Employment Opportunity
Commission shall carry on a continuing program of research, education,
and technical assistance including-
" (A) conducting and promoting research with the intent of
developing means to expeditiously correct the wage rate differentials
described in section (6) (h) i
" (B) publishing and otherwise making available to employers, labor
organizations, professional associations, educational institutions,
the various media of communication, and the general public the
findings of studies and other materials for promoting compliance with
section 6 (h) ;
" (C) sponsoring and assisting State and community informational and
educational programs; and
" (D) providing technical assistance to employers, labor
organizations, professional associations and other interested persons
on means of achieving and maintaining compliance with the provisions
of section 6 (h)
" (5) The report submitted biennially by the Secretary to Congress under
paragraph (1) shall include a separate evaluation and appraisal regarding
the implementation of section 6 (h) .".
SEC. 8. CONFORMING AMENDMENTS.
(a) CONGRESSIONAL EMPLOYEES.
(1) APPLICATION. SECTION 203 (A) (1) OF THE CONGRESSIONAL
ACCOUNTABILITY ACT OF 1995 (2 U.S.C. 1313 (A) (1) ) IS AMENDED-
(A) BY STRIKING "SUBSECTIONS (A) (1) AND (D) OF SECTION 6" AND
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S. 232 JANUARY 30, 1997
-- VERSION: 1
INSERTING "SUBSECTIONS (A) (1), (D), AND (H) OF SECTION 6"; AND
(B) BY STRIKING "206 (A) (1) AND (D) AND INSERTING "206 (A) (1),
(D), AND (H) ".
(2) REMEDIES. SECTION 203 (B) OF SUCH ACT (2 U.S.C. 1313 (B) ) IS
AMENDED BY INSERTING BEFORE THE PERIOD THE FOLLOWING: "OR, IN AN
APPROPRIATE CASE, UNDER SECTION 16 (F) OF SUCH ACT (29 U.S.C.
216 (F) )
(B) EXECUTIVE BRANCH EMPLOYEES.- -
(1) APPLICATION. -SECTION 413 (A) (1) OF TITLE 3, UNITED STATES CODE,
AS ADDED BY SECTION 2 (A) OF THE PRESIDENTIAL AND EXECUTIVE OFFICE
ACCOUNTABILITY ACT (PUBLIC LAW 104-331; 110 STAT. 4053), IS AMENDED
BY STRIKING "SUBSECTIONS (A) (1) AND (D) OF SECTION 6" AND INSERTING
"SUBSECTIONS (A) (1), (D), AND (H) OF SECTION 6".
(2) REMEDIES. -SECTION 413 (B) OF SUCH TITLE IS AMENDED BY INSERTING
BEFORE THE PERIOD THE FOLLOWING: "OR, IN AN APPROPRIATE CASE, UNDER
SECTION 16 (F) OF SUCH ACT".
SEC. 9. EFFECTIVE DATE.
The amendments made by this Act shall take effect 1 year after the date
of enactment of this Act.
LOAD-DATE: February 3, 1997
'Comparable Worth' Makes a Comeback
By DIANA FURCHTGOTT-ROTH
woman's salary is 75% of the average
Clinton from issuing an executive order
And CHRISTINE STOLBA
man's because the average woman has
forbidding the federal government from
It's payoff time for the feminists who
less work experience and is more likely to
doing business with companies that do not
have supported President Clinton through
choose a job that gives her the flexibility to
adopt the standards.
L'Affaire Lewinsky. On Saturday Mr. Clin-
combine work and family and to take time
Advocates of comparable worth say that
ton announced a $14 million so-called Equal
out of the work force to bear and raise chil-
all they want to do is to correct labor mar-
Pay Initiative and called for the passage of
dren. That isn't discrimination, it's
ket flaws due to discrimination against
Sen. Tom Daschle's Paycheck Fairness
greater choice for women.
women. But the president's initiative is a
Act. "Today women earn about 75 cents for
The only way to get rid of the average
big step toward an economy ruled by bu-
every dollar a man earns." the president
wage gap is to mandate equal pay for dif-
reaucratic diktat. After all, if the law sanc-
declared. adding that the gap persists be-
ferent jobs, a practice known as "compa-
tions meddling with the market in order to
cause of "the demeaning practice of wage
rable worth." That's precisely what Mr.
achieve "gender justice." why shouldn't
discrimination in our workplaces."
Clinton seeks to accomplish. Since compa-
other groups demand a more equitable dis-
This attempt to codify the discredited
rable worth has been rejected in courts
tribution also? The wage gap between mar-
theory of comparable worth under another
all over the country, Mr. Clinton now pro-
ried and unmarried men was estimated a
poses to enforce it through the bureau-
few years ago at 60% far higher than the
cracy.
male-female wage gap. Should unmarried
Under the president's plan. government
men also be considered for comparable
bureaucrats will "objectively" determine a
worth?
job's worth by considering the working
While the stated intention of these pro-
conditions and the knowledge or skill re-
posals is equality, they rest on an assump-
quired to perform a task. Neither experi-
tion that women cannot make it on their
ence nor risk, two factors that increase
own. Women are allegedly funneled into
men's average wages relative to those of
certain occupations by a sexist society-
women, are included as relevant job-re-
view that flies in the face of feminist argu-
lated criteria. Thus these criteria favor
ments that women can do any job. Compa-
traditionally female occupations over male
rable worth works against women's inter-
ones (secretaries over truck drivers), and
ests. If employers had to pay women
white-collar jobs requiring education over
higher-than-market wages, fewer women
Is she paid enough? The government
blue-collar work.
would get hired in the first place.
wants to know.
The Paycheck Fairness Act would au-
Unemployment for both men and
name would be enforced by the Labor De-
thorize the secretary of labor to establish
women is near a 30-year low: wages and la-
partment's Office of Federal Contract
guidelines for evaluating jobs. In the lan-
bor force participation rates for women are
Compliance, the same folks who brought us
guage of the bill: "The guidelines
shall
at an all-time high: and the economy is ex-
workplace quotas via Executive Order
be designed to enable employers voluntar-
panding robustly. The best way to help
11246. Never mind that it is already illegal
ily to compare wages paid for different jobs
women succeed economically is to keep the
to pay unequal wages to equally qualified
to determine if the pay scales involved ad-
economy strong-something Washington
men and women who do the same job.
equately and fairly reflect
[these] re-
won't accomplish by giving bureaucrats
When that occurs, women sue and invari-
quirements for each such job, with the goal
more power over the market.
ably win. But such discrimination is rare.
of eliminating unfair pay disparities be-
When adjustments are made for age. expe-
tween occupations traditionally dominated
Ms. Furchtgott-Roth is a fellow at the
rience. education, occupation and position.
by men or women."
American Enterprise Institute. Ms. Stolba IS
women earn approximately the same as
The Labor Department could decide. for
n doctoral candidate in U.S. history at
men.
example, that administrative assistants
Emory University. They are the authors of
Mr. Clinton's claim that women earn
should be paid as much as oil drillers and
"Women's Figures: All Illustrated Guide to
only 75 cents toa man's dollar is based on a
teachers as much as construction workers.
the Economic Progress of Women in Amer-
crude comparison: all women's salaries
These guidelines are described as "volun-
ica," to be published nert month by AEI
vs. all men's salaries. But the average
tary." but there is nothing to prevent Mr.
Press and the Independent Women's Form.
THE WALL STREET JOURNAL
THURSDAY. FEBRUARY 4. 1999
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106TH CONGRESS
1ST SESSION
S.
IN THE SENATE OF THE UNITED STATES
Mr. DASCHLE introduced the following bill; which was read twice and referred
to the Committee on
A BILL
To amend the Fair Labor Standards Act of 1938 to provide
more effective remedies to victims of discrimination in
the payment of wages on the basis of sex, and for other
purposes.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4
This Act may be cited as the "Paycheck Fairness
5 Act".
6 SEC. 2. FINDINGS.
7
Congress makes the following findings:
8
(1) Women have entered the workforce in
9
record numbers.
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1
(2) Even in the 1990s, women earn signifi-
2
cantly lower pay than men for work on jobs that re-
3
quire equal skill, effort, and responsibility and that
4
are performed under similar working conditions.
5
These pay disparities exist in both the private and
6
governmental sectors. In many instances, the pay
7
disparities can only be due to continued intentional
8
discrimination or the lingering effects of past dis-
9
crimination.
10
(3) The existence of such pay disparities-
11
(A) depresses the wages of working fami-
12
lies who rely on the wages of all members of the
13
family to make ends meet;
14
(B) prevents the optimum utilization of
15
available labor resources;
16
(C) has been spread and perpetuated,
17
through commerce and the channels and instru-
18
mentalities of commerce, among the workers of
19
the several States;
20
(D) burdens commerce and the free flow of
21
goods in commerce;
22
(E) constitutes an unfair method of com-
23
petition in commerce;
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(F) leads to labor disputes burdening and
2
obstructing commerce and the free flow of
3
goods in commerce;
4
(G) interferes with the orderly and fair
5
marketing of goods in commerce; and
6
(H) in many instances, may deprive work-
7
ers of equal protection on the basis of sex in
8
violation of the fifth and 14th amendments.
9
(4)(A) Artificial barriers to the elimination of
10
discrimination in the payment of wages on the basis
11
of sex continue to exist more than 3 decades after
12
the enactment of the Fair Labor Standards Act of
13
1938 (29 U.S.C. 201 et seq.) and the Civil Rights
14
Act of 1964 (42 U.S.C. 2000a et seq.).
15
(B) Elimination of such barriers would have
16
positive effects, including-
17
(i) providing a solution to problems in the
18
economy created by unfair pay disparities;
19
(ii) substantially reducing the number of
20
working women earning unfairly low wages,
21
thereby reducing the dependence on public as-
22
sistance; and
23
(iii) promoting stable families by enabling
24
all family members to earn a fair rate of pay;
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1
(iv) remedying the effects of past discrimi-
2
nation on the basis of sex and ensuring that in
3
the future workers are afforded equal protection
4
on the basis of sex; and
5
(v) in the private sector, ensuring equal
6
protection pursuant to Congress' power to en-
7
force the fifth and 14th amendments.
8
(5) With increased information about the provi-
9
sions added by the Equal Pay Act of 1963 and gen-
10
eralized wage data, along with more effective rem-
11
edies, women will be better able to recognize and en-
12
force their rights to equal pay for work on jobs that
13
require equal skill, effort, and responsibility and that
14
are performed under similar working conditions.
15
(6) Certain employers have already made great
16
strides in eradicating unfair pay disparities in the
17
workplace and their achievements should be recog-
18
nized.
19 SEC. 3. ENHANCED ENFORCEMENT OF EQUAL PAY RE-
20
QUIREMENTS.
21
(a) NONRETALIATION PROVISION-Section 15(a)(3)
22 of the Fair Labor Standards Act of 1938 (29 U.S.C.
23 215(a)(3)) is amended-
24
(1) by striking "or has" each place it appears
25
and inserting "has"; and
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(2) by inserting before the semicolon the follow-
2
ing: ", or has inquired about, discussed, or otherwise
3
disclosed the wages of the employee or another em-
4
ployee".
5
(b) ENHANCED PENALTIES.-Section 16(b) of the
6 Fair Labor Standards Act of 1938 (29 U.S.C. 216(b)) is
7 amended-
8
(1) by inserting after the first sentence the fol-
9
lowing: "Any employer who violates section 6(d)
10
shall additionally be liable for such compensatory or
11
punitive damages as may be appropriate, except that
12
the United States shall not be liable for punitive
13
damages.";
14
(2) in the sentence beginning "An action to",
15
by striking "either of the preceding sentences" and
16
inserting "any of the preceding sentences of this
17
subsection";
18
(3) in the sentence beginning "No employees
19
shall", by striking "No employees" and inserting
20
"Except with respect to class actions brought to en-
21
force section 6(d), no employee";
22
(4) by inserting after the sentence referred to
23
in paragraph (3), the following: "Notwithstanding
24
any other provision of Federal law, any action
25
brought to enforce section 6(d) may be maintained
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as a class action as provided by the Federal Rules
2
of Civil Procedure."; and
3
(5) in the sentence beginning "The court in"-
4
(A) by striking "in such action" and in-
5
serting "in any action brought to recover the li-
6
ability prescribed in any of the preceding sen-
7
tences of this subsection"; and
8
(B) by inserting before the period the fol-
9
lowing: ", including expert fees".
10
(c) ACTION BY SECRETARY.-Section 16(c) of the
11 Fair Labor Standards Act of 1938 (29 U.S.C. 216(c)) is
12 amended-
13
(1) in the first sentence-
14
(A) by inserting "or, in the case of a viola-
15
tion of section 6(d), additional compensatory or
16
punitive damages," before "and the agree-
17
ment"; and
18
(B) by inserting before the period the fol-
19
lowing: ", or such compensatory or punitive
20
damages, as appropriate";
21
(2) in the second sentence, by inserting before
22
the period the following: " and, in the case of a vio-
23
lation of section 6(d), additional compensatory or
24
punitive damages";
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1
(3) in the third sentence, by striking "the first
2
sentence" and inserting "the first or second sen-
3
tence"; and
4
(4) in the last sentence, by inserting after "in
5
the complaint" the following: "or becomes a party
6
plaintiff in a class action brought to enforce section
7
6(d)".
8 SEC. 4. TRAINING.
9
The Equal Employment Opportunity Commission
10 and the Office of Federal Contract Compliance Programs,
11 subject to the availability of funds appropriated under sec-
12 tion 9(b), shall provide training to Commission employees
13 and affected individuals and entities on matters involving
14 discrimination in the payment of wages.
15 SEC. 5. RESEARCH, EDUCATION, AND OUTREACH.
16
The Secretary of Labor shall conduct studies and
17 provide information to employers, labor organizations, and
18 the general public concerning the means available to elimi-
19 nate pay disparities between men and women, including-
20
(1) conducting and promoting research to de-
21
velop the means to correct expeditiously the condi-
22
tions leading to the pay disparities;
23
(2) publishing and otherwise making available
24
to employers, labor organizations, professional asso-
25
ciations, educational institutions, the media, and the
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1
general public the findings resulting from studies
2
and other materials, relating to eliminating the pay
3
disparities;
4
(3) sponsoring and assisting State and commu-
5
nity informational and educational programs;
6
(4) providing information to employers, labor
7
organizations, professional associations, and other
8
interested persons on the means of climinating the
9
pay disparities;
10
(5) recognizing and promoting the achievements
11
of employers, labor organizations, and professional
12
associations that have worked to eliminate the pay
13
disparities; and
14
(6) convening a national summit to discuss, and
15
consider approaches for rectifying, the pay dispari-
16
ties.
17 SEC. 6. TECHNICAL ASSISTANCE AND EMPLOYER RECOGNI-
18
TION PROGRAM.
19
(a) GUIDELINES.-
20
(1) IN GENERAL.-The Secretary of Labor shall
21
develop guidelines to enable employers to evaluate
22
job categories based on objective criteria such as
23
educational requirements, skill requirements, inde-
24
pendence, working conditions, and responsibility, in-
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1
cluding decisionmaking responsibility and de facto
2
supervisory responsibility.
3
(2) USE.-The guidelines developed under
4
paragraph (1) shall be designed to enable employers
5
voluntarily to compare wages paid for different jobs
6
to determine if the pay scales involved adequately
7
and fairly reflect the educational requirements, skill
8
requirements, independence, working conditions, and
9
responsibility for each such job with the goal of
10
eliminating unfair pay disparities between occupa-
11
tions traditionally dominated by men or women.
12
(3) PUBLICATION.-The guidelines shall be de-
13
veloped under paragraph (1) and published in the
14
Federal Register not later than 180 days after the
15
date of enactment of this Act.
16
(b) EMPLOYER RECOGNITION.-
17
(1) PURPOSE.-It is the purpose of this sub-
18
section to emphasize the importance of, encourage
19
the improvement of, and recognize the excellence of
20
employer efforts to pay wages to women that reflect
21
the real value of the contributions of such women to
22
the workplace.
23
(2) IN GENERAL.-To carry out the purpose of
24
this subsection, the Secretary of Labor shall estab-
25
lish a program under which the Secretary shall pro-
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vide for the recognition of employers who, pursuant
2
to a voluntary job evaluation conducted by the em-
3
ployer, adjust their wage scales (such adjustments
4
shall not include the lowering of wages paid to men)
5
using the guidelines developed under subsection (a)
6
to ensure that women are paid fairly in comparison
7
to men.
8
(3) TECHNICAL ASSISTANCE.-The Secretary of
9
Labor may provide technical assistance to assist an
10
employer in carrying out an evaluation under para-
11
graph (2).
12
(c) REGULATIONS.-The Secretary of Labor shall
13 promulgate such rules and regulations as may be nec-
14 essary to carry out this section.
15 SEC. 7. ESTABLISHMENT OF THE NATIONAL AWARD FOR
16
PAY EQUITY IN THE WORKPLACE.
17
(a) IN GENERAL-There is established the Robert
18 Reich National Award for Pay Equity in the Workplace,
19 which shall be evidenced by a medal bearing the inscrip-
20 tion "Robert Reich National Award for Pay Equity in the
21 Workplace". The medal shall be of such design and mate-
22 rials, and bear such additional inscriptions, as the Sec-
23 retary of Labor may prescribe.
24
(b) CRITERIA FOR QUALIFICATION.-To qualify to
25 receive an award under this section a business shall-
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(1) submit a written application to the Sec-
2
retary of Labor, at such time, in such manner, and
3
containing such information as the Secretary may
4
require, including at a minimum information that
5
demonstrates that the business has made substantial
6
effort to eliminate pay disparities between men and
7
women, and deserves special recognition as a con-
8
sequence; and
9
(2) meet such additional requirements and
10
specifications as the Secretary of Labor determines
11
to be appropriate.
12
(c) MAKING AND PRESENTATION OF AWARD.-
13
(1) AWARD.-After receiving recommendations
14
from the Secretary of Labor, the President or the
15
designated representative of the President shall an-
16
nually present the award described in subsection (a)
17
to businesses that meet the qualifications described
18
in subsection (b).
19
(2) PRESENTATION.-The President or the des-
20
ignated representative of the President shall present
21
the award under this section with such ceremonies
22
as the President or the designated representative of
23
the President may determine to be appropriate.
24
(d) BUSINESs.-In this section, the term "business"
25 includes—
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(1) (A) a corporation, including a nonprofit cor-
2
poration;
3
(B) a partnership;
4
(C) a professional association;
5
(D) a labor organization; and
6
(E) a business entity similar to an entity de-
7
scribed in any of subparagraphs (A) through (D);
8
(2) an entity carrying out an education referral
9
program, a training program, such as an apprentice-
10
ship or management training program, or a similar
11
program; and
12
(3) an entity carrying out a joint program,
13
formed by a combination of any entities described in
14
paragraph (1) or (2).
15 SEC. 8. SENSE OF THE SENATE REGARDING INCREASED IN-
16
FORMATION ON PAY DISPARITIES.
17
It is the sense of the Senate that the President should
18 take appropriate steps to increase the amount of informa-
19 tion available with respect to wage disparities. In SO doing,
20 the President, or the designees of the President, should
21 consider ways of collecting this data that—
22
(1) maximize the utility of the information for
23
both the government and the public; while
24
(2) protecting individuals' privacy and minimiz-
25
ing the burdens on reporting entities.
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1 SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
2
There are authorized to be appropriated such sums
3 as may be necessary to carry out this Act.
COMPARABLE WORTH
Senator Tom Harkin and Rep. Eleanor Holmes Norton introduced bills to implement
comparable worth in the last Congress (and these bills are expected to be reintroduced this
year).
The Congressional comparable worth proposals would prohibit employers from paying
lower wages for jobs dominated by employees of a particular sex, race, or national origin
than for jobs dominated by employees of the opposite sex or different race or national
origin for work on "equivalent" jobs. Equivalent jobs would be defined as jobs that may
be dissimilar, but whose requirements are equivalent when viewed as a composite of
skills, effort, responsibility, and working conditions. The EEOC would establish criteria
for determining whether jobs are dominated by employees of a particular sex, race or
national origin. The bills also provide that no wage rates may be reduced in order to
comply with comparable worth requirements.
ARGUMENTS FOR COMPARABLE WORTH LAW
There is a significant wage gap. According to the Council of Economic Advisors, in
1997, the gap between men's and women's wages was approximately 75 percent. The
most recent detailed longitudinal study found that in the late 1980s about one-third of the
gender pay gap was explained by differences in the skills and experience that women
bring to the labor market and about 28 percent was due to differences in industry,
occupation, and union status among men and women. Accounting for these difference
raised the female/male pay ratio in the late 1980s from about 72 percent to about 88
percent, leaving around 12 percent as an "unexplained" difference. While some of this
gap is due to unequal wages paid for the same job, some of the difference is due to
women in occupations predominated by women not being paid the same by men in
equivalent jobs.
Comparable worth could increase wages. The AFL-CIO recently issued a study that
shows that America's working families lose approximately $200 billion of income
annually to the wage gap -- an average loss of more than $4,000 every year for each
family, even after accounting for difference in education, age, location, and the number of
hours worked. The study also showed that if married women were paid the same as
comparable men, their family incomes would rise by nearly 6 percent, and their families'
poverty rates would fall from 2.1 percent to 0.8 percent.
Eight states have implemented comparable worth laws for state employees. Eight
states -- Connecticut, Iowa, Minnesota, Montana, New York, Oregon, Washington, and
Wisconsin -- have enacted comparable worth laws covering state government employees.
With the exception of Montana whose pay equity study found that there was "no
significant gender bias," the seven states that have implemented comparable worth
expended only between 1 percent and 4 percent of their payroll budgets.
Comparable worth adjustments for state and local governments have resulted in
payments. Public employees in twenty states received collective bargaining related
equity adjustments during the 1980s. State employees in Michigan received $21 million
in comparable worth adjustments; in Pennsylvania, $16 million; and in Washington, $442
million. In the 1990's, state workers in Connecticut reached a $22 million pay equity
settlement that will give nearly half of that state's workforce and average of $1,000 per
year. In 1994, social workers in Los Angeles County won a 20 percent pay equity wage
increase. Previously, there had been a 34 percent wage differential between the female-
dominated social worker class and the male-dominated probation officer class, despite
similarity of skills, responsibilities, and working conditions.
ARGUMENTS AGAINST COMPARABLE WORTH
Comparable worth policies could cause significant job losses. Comparable worth job
assessments are based on skills, effort, responsibility and working conditions required by
the job without taking into account any of the traditional supply and demand factors. If
the wages of child-care workers (which is dominated by women) were to be raised to be
equivalent to a comparable job (e.g., mechanics, which is dominated by men), this would
mean that wages would be increased above the market-clearing level and unemployment
would result.
Comparable worth evaluations could cause substantial administrative costs -- and
possibly extensive litigation. The Harkin/Norton bills call for the EEOC to establish
criteria for determining whether particular jobs meet the gender, race or ethnicity
thresholds, but do not call for governmental classification of jobs. Assessments would be
done by individual employers and comparisons would be made between jobs at a
particular establishment. While this decentralized approach avoids direct government job
ratings, it could lead to significant variation among establishments and to costly litigation
challenging the criteria and scoring of jobs at particular establishments. While it could
provide a job bonanza for human resource consultants, the resulting administrative costs
could be a severe burden to many firms.
The accuracy of comparable worth job classifications is questionable. A 1989
experimental study of comparable worth prepared for the Federal Reserve Bank of
Kansas City had three commercial job evaluation firms rate the same 27 jobs in an actual
company. The report concludes that scores provided by different job evaluators do not
provide mutually consistent adjustments to existing pay scales.
Comparable worth is more invasive of private business decision-making than other
Federal mandates. For example, compared with the minimum wage which is uniform in
its application and is relatively easy to administer, comparable worth would require more
extensive record-keeping, incur greater administrative expenses, and affect wage levels
and resource allocations without regard to productivity and other market conditions. As
the American economy becomes more and more flexible, the rigid job classification
framework of the Harkin/Norton bills would move us backwards -- against the tide
toward more flexible job definitions, individual merit-based pay, and work teams.
2
Mandatory comparable worth experience in the United States -- which has been
limited to public sector employment in a few states -- fails to establish a good model
for a mandatory private sector program. Governments generally use a traditional job-
description based, administratively run system for determining wages. This makes it
more feasible to implement a comparable worth system in government; however, both the
private sector and reform-oriented government personnel systems are moving toward
compensation-based regimes linked to individual worker performance. At least one study
of public-sector comparable worth programs (Minnesota and San Jose, CA) found that
women's wages increased slightly, but there was also a slight loss of employment in the
form of reduced future jobs.
3
DRAFT - MARCH 9, 1999
COMPARABLE WORTH
Senator Tom Harkin and Rep. Eleanor Holmes Norton introduced bills to implement
comparable worth in the last Congress (and these bills are expected to be reintroduced this
year).
The Congressional comparable worth proposals would prohibit employers from paying
lower wages for jobs dominated by employees of a particular sex, race, or national origin
than for jobs dominated by employees of the opposite sex or different race or national
origin for work on "equivalent" jobs. Equivalent jobs would be defined as jobs that may
be dissimilar, but whose requirements are equivalent when viewed as a composite of
skills, effort, responsibility, and working conditions. The EEOC would establish criteria
for determining whether jobs are dominated by employees of a particular sex, race or
national origin. The bills also provide that no wage rates may be reduced in order to
comply with comparable worth requirements.
Overall, a national mandatory comparable worth policy could adversely effect the U.S.
economy by creating substantial economic distortions. Comparable worth requirements
would likely result in significant job loss and substantial cost and administrative burdens
to American businesses, while potentially clogging up our courts with costly and disruptive
litigation.
Comparable worth policies could cause significant job losses. Comparable worth job
assessments are based on skills, effort, responsibility and working conditions required by
the job without taking into account any of the traditional supply and demand factors. If
the wages of child-care workers (which is dominated by women) were to be raised to be
equivalent to a comparable job (e.g., mechanics, which is dominated by men), this would
mean that wages would be increased above the market-clearing level and unemployment
would result -- hardly the outcome envisioned by those wanting to end discrimination.
Comparable worth evaluations are likely to cause substantial administrative costs --
and possibly extensive litigation. The Harkin/Norton bills call for the EEOC to
establish criteria for determining whether particular jobs meet the gender, race or
ethnicity thresholds, but do not call for governmental classification of jobs. Assessments
would be done by individual employers and comparisons would be made between jobs at
a particular establishment. While this decentralized approach avoids direct government
job ratings, it could lead to significant variation among establishments and to costly
litigation challenging the criteria and scoring of jobs at particular establishments. While
it could provide a job bonanza for human resource consultants, the resulting
administrative costs could be a severe burden to many firms.
The accuracy of comparable worth job classifications is questionable. A 1989
experimental study of comparable worth prepared for the Federal Reserve Bank of
Kansas City had three commercial job evaluation firms rate the same 27 jobs in an actual
company. The report concludes that scores provided by different job evaluators do not
provide mutually consistent adjustments to existing pay scales.
Comparable worth is more invasive of private business decision-making than other
Federal mandates. For example, compared with the minimum wage which is uniform in
its application and is relatively easy to administer, comparable worth would require more
extensive record-keeping, incur greater administrative expenses, and affect wage levels
and resource allocations without regard to productivity and other market conditions.
By relying on rigid job classification frameworks, comparable worth wage policies
run counter to the flexibility offered by the new economy. As the American economy
becomes more and more flexible, the rigid job classification framework of the
Harkin/Norton bills would move us backwards -- against the tide toward more flexible
job definitions, individual merit-based pay, and work teams.
Mandatory comparable worth experience in the United States -- which has been
limited to public sector employment in a few states -- fails to establish a good model
for a mandatory private sector program. Governments generally use a traditional job-
description based, administratively run system for determining wages. This makes it
more feasible to implement a comparable worth system in government; however, both the
private sector and reform-oriented government personnel systems are moving toward
compensation-based regimes linked to individual worker performance. At least one study
of public-sector comparable worth programs (Minnesota and San Jose, CA) found that
women's wages increased slightly, but there was also a slight loss of employment in the
form of reduced future jobs.
2
WDI.WPD
Page
Wage Discrimination Initiative
Equal Pm
Enforcement Activities:
$1.8 m
Training. Fund EEOC's full request of $1.8 m for training. Fund contractors to
provide the training. Training would be Commission-wide and include 850 investigators,
250 litigation attorneys and 150 supervisors and managers.
$0.0 m
24 FTE for enforcement. Do not fund EEOC's requested $3 m for additional
enforcement staff. On-board staff would be better trained with the training funds to
identify wage discrimination cases. No specialist staff is necessary.
Outreach, education, and technical assistance:
$3.0 m
Fund contractors (maybe through EEOC's revolving fund) to provide specialist
technical assistance, education, and outreach activities to employers, unions, and
advocacy groups. Do not hire 24 permanent FTE to provide this service.
Up to
$4.5 m
Public Service Announcements (psa's). Hire a public relations firm to develop
psa's to educate employers, unions, advocacy groups, and the public on the importance of
this issue. At $350,000 each, up to 12 psa's could be developed to target audiences in
different regions. (This would be the first area that would be reduced to fund an initiative
at less than $10 m.)
Staffing and Technology (these are the only permanent costs to EEOC):
$0.4 m
Fund 4 full-time FTE at $100,000 to manage the program, hire the contracting
staff, respond to audience requests for pamphlets and brochures, etc.
$0.3 m
Fund $300,00 for associated technology needs.
Research:
$0.0 m
Do not fund the $8 m request for research.
$10.0 m
COMMITTEE
NATIONALI
JUSTICE
NATIONAL COMMITTEE
YOU CAN
N
BANK ON
ON PAY EQUITY
EQUITY
1126 Sixteenth St, NW, Washington, DC 20036 (202) 331-7343 FAX (202) 331-7406
Profile of the Wage Gap by Selected Occupations
According to an analysis of data provided by the U.S. Department of Labor's Bureau of Labor
Statistics, 1 women are paid less in 99% of occupational classifications for which data was
available.
Even in job categories where women make up the majority of workers, women were paid less.
Only in one category, miscellaneous food preparation, did women make more money.
Following are median weekly earnings for women and men in selected occupations. Jobs with
an asterisk (***) indicate a profession in which women make up more than half of the
workers.
TABLE I.
OCCUPATIONS WITH ESTIMATED EARNINGS OF $33,000 + 2
Men's
Women's
Wage
Weekly
Occupation
weekly wages
weekly wages
Gap
Earnings Gap
Marketing, Advertising, and PR
Managers
$1,059
$736
69%
$323
Lawyers
$1,267
$959
76%
$308
Engineers, Architects, and
Surveyors
$989
$812
82%
$177
Economists
$970
$707
73%
$263
Editors and Reporters
$769
$606
79%
$163
Computer Programmers
$869
$742
85%
$127
Insurance sales***
$755
$493
65%
$262
2 1 Data was analyzed using 1997 Household Data Annual Averages, Burcau of Labor Statistics.
weeks. Approximate Annual Earnings categories were estimated by multiplying median weekly wages for men by 52
4477 6300
Printing Courtes) of Service Employees International Union. APL-CIOLO
TABLE II.
OCCUPATIONS WITH ESTIMATED ANNUAL EARNINGS OF $20,000 TO $32,999
Men's
Women's
Wage
Weekly
Occupation
weekly wages
weekly wages
Gap
Earnings Gap
Financial Records Processing ***
$459
$417
91%
$42
Insurance Adjusters, Examiners,
and Investigators***
$655
$473
73%
$182
Computer Equipment
Operators***
$526
$422
80%
$104
Printing Machine Operators
$516
$353
68%
$163
Sales Retail and Personal
Services***
$392
$266
68%
$126
TABLE III.
OCCUPATIONS WITH ESTIMATED ANNUAL EARNINGS OF LESS THAN $20,000:
Men's
Women's
Wage
Weekly
Occupation
weekly wages
weekly wages
Gap
Earnings Gap
Janitors and Cleaners
$330
$275
83%
$55
Bartenders***
$341
$293
86%
$48
Laundering and dry cleaning
machine operators***
$322
$253
79%
$69
Textile/Sewing Machine
Operators***
$284
$260
92%
$24
Hand packers and packagers***
$327
$296
90%
$31
TABLE IV.
ADDITIONAL SELECTED OCCUPATIONS IN WHICH WOMEN ARE THE MAJORITY OF
WORKERS:
Occupation (% of total workers
Men's
Women's
Wage
Weekly
that are female)
weekly wages
weekly wages
Gap
Earnings Gap
Social workers
(68% female)
$551
$518
94%
$33
Registered Nurses
(92% female)
$778
$705
91%
$73
Records Processing (except
financial)
(79% female)
$482
$377
78%
$105
Elementary School Teachers
(83% female)
$719
$655
91%
$64
Accountants, Auditors --
Management Related
$791
$590
75%
$201
(57% female)
Data Entry Keyers
(81% female)
$473
$384
81%
$89