Gender pay disparity and the many reasons for it, continues to be studied by researchers. A new study by researchers at Wellesley, Harvard, Boston College and the Institute for Social Research in Oslo, Sweden identifies motherhood as a big impediment to equal pay as women’s careers progress.
According to US Census statistics, 57% of women work outside the home, compared with 69.2% of men. Fed Chairperson Janet Yellen stated that “[o]ne recent study estimates that increasing the female participation rate to that of men would raise our gross domestic product by 5%.” So why aren’t more women in the workforce?
Under the Equal Pay Act (EPA), courts have generally allowed employers to prove that some “factor other than sex” justified the pay differentials. However, a recent Federal 8th Circuit of Appeals case narrowed the parameters that employers can use to defend EPA lawsuits and allowed broadening of testimony to show the employer is committing systemic discrimination.
Solely based on Federal law…yes. A federal court ruled last week that it is legal to pay female employees less than men if it is based on past salary history. This decision by the 9th Circuit Court of Appeals overturns a previous ruling that stated that pay differences solely on past salary history were discriminatory, based on the Equal Pay Act.
An employer’s “branding” of their hiring campaign as the “place to work for millennials” resulted in a class action age discrimination lawsuit. Pricewaterhouse Coopers hires thousands of college graduates each year. To do so successfully, it has put programs in place designed to attract the younger workforce.
Do you worry about hiring the right people? Do you worry about retaining and engaging your current workforce? All in an effort to drive business performance? Maybe it is time to look at your organization’s pay equity.
A current question before the Trump Administration is whether the OFCCP has outlived its usefulness. The Heritage Foundation rightly asks whether there is a need for the OFCCP given that many of its current initiatives are the purview of other agencies. Moreover, there is a real question of the effectiveness and ROI of the agency.
How the Americans with Disability Act (ADA) impacts wellness programs still makes employers’ heads spin. On the one hand, the Affordable Care Act (ACA) encourages such programs as a way to control costs. On the other hand, the EEOC has the opinion that such programs can be used only in limited ways. The result is that many employers are shying away from wellness programs.
Victor Park West
19575 Victor Parkway, Suite 100
Livonia, MI 48152