On April 24, the House Education and Labor Committee held a hearing on the Equal Pay Act (P.L. 88-38) and the Paycheck Fairness Act (H.R. 1338). The Senate held a similar hearing on April 12 (see The Source, 4/13/07).
Chair George Miller (D-CA) said, “On average, women’s wages constitute more than one-third of their families’ income. Paying women an equal salary for equal work is an immediate means to make these families more secure.” Rep. Miller continued, “More than 3.5 million single-mother families live in poverty. Because of pay inequity, single mothers are twice as likely to live below the federal poverty line as single fathers. Equal pay would serve as an important antidote to poverty. Gender pay discrimination clearly has far-reaching implications for America’s economy and middle-class. That’s why this hearing today is so important.”
Ranking Member Howard “Buck” McKeon (R-CA) said, “[B]efore we approach this issue, we should look to the time-honored mantra that guides or, at least, should guide so much of our work here in Washington: do no harm.” Rep. McKeon continued, “…the fact is, under current law, there are remedies for violations that show clear gender discrimination. Under the Equal Pay Act, for example, the person found having been discriminated against can obtain back pay for any wages unlawfully withheld as the result of pay inequality and twice that amount for a willful violation. And violations of the Civil Rights Act [P.L. 88-352] allow for jury trials and punitive damages for victims of ‘intentional’ sex discrimination, including in wage-related cases.”
Rep. Rosa DeLauro (D-CT), sponsor of the Paycheck Fairness Act, and Del. Eleanor Holmes Norton (D-DC), sponsor of another bill addressing pay equity, the Fair Pay Act (as-yet-unnumbered), testified on the first panel.
Rep. DeLauro stated, “In today’s world, economic reality and economic insecurity mandate two-earner families, where possible. In many families, the inequity of the pay gap falls hardest upon children, because so many working women are the primary breadwinners in their households. In fact, nearly two-thirds of working women provide half or more of their household income, and 41 percent of women are their families’ sole source of income.” Rep. DeLauro added, “No one should be forced to consider a trade-off between a full wage, a family life, and a good job. Yet that is what is happening…According to the [General Accountability Office], men with children earn about two percent more than men without children, while women with children earn about 2.5 percent less than women without children…The marketplace alone will not correct this injustice that is why we need a legislative solution.”
Del. Norton said, “Both bills seek to update the 1963 Equal Pay Act [(EPA)] and adapt the law to today’s economy and workplace. The Paycheck Fairness Act is an important procedural update of the EPA’s basic procedures, giving [it] the same muscle as other anti-discrimination statutes, including Title VII of the 1964 Civil Rights Act and the Age Discrimination in Employment Act (P.L. 90-202).” Del. Norton continued, “Unlike other anti-discrimination law, the EPA has fallen into disuse because its procedures are antiquated and offer no incentive for women to file complaints. Only 364 [lawsuits], an average of 24 EPA lawsuits a year, were filed by the [Equal Employment Opportunity Commission] from 1979 to mid-2003…While the EPA once had been a highly successful civil rights law, it is an old-fashioned statute, too creaky with age to be useful.”
Catherine Hill, director of research at the American Association of University Women (AAUW), stated, “In our report, AAUW found that just one year after college graduation, women earn only 80 percent of what their male counterparts earn. Even women who make the same choices as men in terms of fields of study and occupation earn less than their male counterparts. Ten years after graduation, women fall further behind, earning only 69 percent of what men earn.” Dr. Hill added, “AAUW’s analysis showed that men’s and women’s different choices can explain only some of the wage gap. After controlling for factors like major, occupation, industry, sector, hours worked, workplace flexibility, experience, educational attainment, enrollment status, [grade point average], institution selectivity, age, race/ethnicity, region, marital status, and children, a five percent difference in the earnings of male and female college graduates is unexplained. It is reasonable to assume that this difference is the product of discrimination. Discrimination is difficult to measure directly. It is illegal, and furthermore, most people don’t recognize discriminatory behavior in themselves or others. This research asked a basic but important question: If a woman made the same choices as a man, would she earn the same pay? The answer is no.”
Diana Furchtgott-Roth, senior fellow at the Hudson Institute, stated: “Representative DeLauro’s claim of unequal pay is exaggerated and distorted. Worse, her remedy might cause employers to favor hiring men, to avoid the possibility of being sued or boycotted under federal ‘guidelines.’ Men and women generally have equal pay for equal work now if they have the same jobs, responsibilities, and skills.” Ms. Furchtgott-Roth continued, “Congresswoman DeLauro and Chairman Miller are paid identically, as are many other men and women with the same job. Two entry-level cashiers at supermarket, one male and one female, are usually paid the same, as are male and female associates at law firms. If they believe they are underpaid, they can sue for discrimination under current law as WalMart employees are doing now. The 77 percent figure cited by Representative DeLauro comes from comparing the 2005 full-time median annual earnings of women with men compiled by the Census Bureau. The 2006 Department of Labor data show that women’s full-time median weekly earnings are 81 percent of men’s. Comparing men and women who work 40 hours weekly yields a ratio of 88 percent.”
Ms. Furchtgott-Roth added, “These wage ratios are computed from aggregate government data and do not take into account differences in education, job title and responsibility, regional labor markets, work experience, occupation, and time the in workforce. When economic studies include these major determinants of incomes, rather than simple averages of all men and women’s salaries, the pay gap shrinks even more. A report by Jody Feder and Linda Levine of the Congressional Research Service entitled, “Pay Equity Legislation in the 110th Congress,” declared that ‘Although these disparities between seemingly comparable men and women are taken as proof of sex-based wage inequities, the data have not been adjusted to reflect gender differences in all characteristics that can legitimately affect relative wages (e.g., college major or uninterrupted years of employment).’” Ms. Furchtgott-Roth noted that “[r]ather than helping women, the Paycheck Fairness Act would have the government not you, and not your boss determine how much you make. This is the most radical idea in American labor law today.”
“Closing the gender pay gap requires that policymakers do more to help families balance work and family life,” said Heather Boushey, senior economist for the Center for Economic and Policy Research. Dr. Boushey continued, “It is women who continue to not only do the most caretaking, but who bear the brunt of the economic penalties of the workplace. Policy initiatives like paid sick days, paid family leave, [and] increased access to flexible workplaces without pay penalties are all important steps in leveling the playing field between men and women on the job.” While realizing that sex segregation of occupations and women’s continued role as caregivers are contributing factors to the pay gap, Dr. Boushey said, “It is also a myth that women choose less-paying occupations because they provide flexibility to better manage work and family. The empirical evidence shows that mothers are actually less likely to be employed in jobs that provide them with greater flexibility…Women are less likely than men to have access to flexibility. In fact, parents are more likely to have nonstandard shifts and rotating hours, making work/family balance more difficult to achieve.”
Dedra Farmer, a plaintiff in a wage discrimination lawsuit filed against WalMart, also testified.
