There are several ways to look at “equal pay” within an organization: The gender pay gap is caused both by explained (measurable) and unexplained (often difficult to measure) components. More so, women who negotiate salary offers are not only less unsuccessful in these pursuits but also face social ostracizing for doing so (Bowles, 2014). Women also hold fewer positions of power in the economic sphere. He holds a PhD in Law and Public Policy from Northeastern University. Members of _ can log in with their society credentials below, This article is distributed under the terms of the Creative Commons Attribution 4.0 License (. Employers have argued that salary history is a neutral “factor other than sex” and, hence, a perfectly acceptable means of determining an appropriate salary for a new hire. At the same time, men who refused to disclose received offers which were 1.2% higher than men who did disclose (Frank, 2017). In 2017, legislatures in both Illinois and New Jersey passed bills which would prohibit employer inquiries as to job applicants’ salary history but both were vetoed by the respective state governors. In 2016, the US Census Bureau reported that the female-to-male earnings ratio (based on the median earnings of men and women in 2015) is 0.8 (or 80 cents to the dollar). Three common ways the pay gap is measured, what leading companies are doing about it, and the best strategies to consider today. Employers profess that inquiries as to current salary and salary history are valuable screening devices which aid in avoiding wasted time on the parts of both applicants and employers. Two research assistants, Nitisha Baronia and Krupa Adusumili, helped conduct background research for the case study on Gap Inc. and this article. Globally, 78% of adult men are in the labor force, compared to 55% of adult women. The Equal Pay Act of 1963 made it a federal requirement that pay scales for identical work be the same regardless of whether the employee doing the labor is male or female. Supreme Court here quashed an order of the Punjab and Haryana High Court. Equal pay for equal work is not a constitutional right or a fundamental right. printing, distribution and staff costs — help keep our paper thriving by If employers determine the value of positions, rather than individuals, pay transparency policies will be easy to implement as they’ll be reinforced by a sound compensation classification methodology. has an equal say. Absent an affirmative Supreme Court ruling that salary history is not an acceptable basis for gender-based wage disparities, circuit courts can expressly disavow prior salary history as a “factor other than sex,” which will greatly increase the opportunity to close the wage gap between men and women and force employers to determine salary based on job responsibilities and associated necessary qualifications, experiences, and skills of job applicants. This includes the sharing of salary information as well as the filing of complaints regarding unlawful employer restrictions on such activity. ORCID iDJeffrey A. Mello https://orcid.org/0000-0003-2476-1640. A surge in pressure from shareholders along with strong state and, in some countries, national regulations (such as those imposed in Iceland) have also been effective in compelling companies to identify and correct pay disparities. In 2018, both Michigan (Local Government Labor Regulatory Limitation Act of 2015) and Wisconsin (Assembly Bill 748) passed laws which prohibit bans on inquiries of current salary or salary history by local governments. This is despite the fact that they are deploying same efforts and time and doing same kind of work as their counterparts.Surprisingly, where on one hand legislature is propagating for equality, on the other judiciary recently has made a controversial move. While about 78% of adult men are in the labor force, only 55% of adult women are in the labor force, the report says. Women are more likely to work in sectors shut down by the coronavirus, more likely to be furloughed across almost every age group, and have taken on increased caring responsibilities while working from home, data gathered during the pandemic shows. But what does “equal pay” mean? . EPEWA requires Colorado employers to notify employees of promotional opportunities and to include salary and benefits information in job postings. £25 to the £501 jackpot. Equal Pay Day 2019: Women still earn lower salaries, fewer promotions Entrepreneurship. One study has found that policies which limit employer access to wage history benefit those with relatively lower wages as employers without information on wage history arranged more face-to-face interviews and asked more questions during interviews than those employers who had wage information (Barach & Horton, 2017). However, in the absence of such initiative, appropriate legislative activity, consistent with the goals of the EPA, should be undertaken as noted above. Merit-based pay systems, as well as those systems which determine compensation based on “quality” of production, are intertwined with organizational performance management systems, which have been found to suffer from high levels of subjectivity or bias (Choon & Embi, 2012; Demere, Sedatole, & Woods, 2018). This means that, they will serve as guidelines to the Central and State governments of India, which are to be kept in mind while framing laws and policies. ‘Pay Gap’ or unequal pay is an issue which has become a matter of concern these days due to an increase in the instances of discriminatory pay scales for the same type of work. While the global education and health gaps have nearly closed – just 12 years left to go for the education gap – large disparities remain in the economic and political spheres. Progress to close the pay gap has slowed significantly under the Conservatives and, at the current pace, it will not be closed until 2052, according to the party’s analysis. However, relative to closing the gender gap in pay, seniority-based pay systems, in and of themselves, perpetuate existing salary inequalities in male-dominated industries. As of this writing, California, Connecticut, Delaware, Maryland, Massachusetts, New York, and Oregon prohibit employers from restricting discussions or inquiries by any employees concerning pay and prohibit retaliation against such activity (Connell & Mantoan, 2018). A draft version of the rules published in October left many employers and attorneys confused and concerned about the proposed scope and geographic reach of the regulations. In both states, employers cannot inquire as to current salary or salary history of a job applicant prior to hiring and may inquire only after an offer is made for the sole purpose of confirming previous salary. Although such a policy would exclude the overwhelming majority of US employers, it would not only be a step in the right direction but also allow unaffected employers to see the benefits associated with wage transparency. 180519), and New Orleans (Executive Order MJL 17-01) each have ordinances which ban salary inquiries by city departments.
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