FREE ESSAY ON EQUAL PAY

EQUAL PAY

EXECUTIVE SUMMARY
Pay equity means of eliminating sex and race discrimination in the wage-setting system.
The wage gap is currently at 73 cents to the dollar. That means the wage gap has narrowed
by less than a half penny per year. There are currently two laws that protect against
wage discrimination, The Equal Pay Act of 1963, which prohibits unequal pay or
"substantially equal" work performed by men and women. Title VII of the Civil Rights Act
of 1964 prohibits wage discrimination on the basis of race, color, sex, religion or
national origin. Pay equity is a benefit for everyone. Women and people of color should
not be in fear of asking how much someone else is making or to question, why they aren't
making a certain amount, when their co-worker is making it.
In order to eliminate the pay gap, we need to do the follow, keep affirmative action
programs in place, employers need to examine and correct their pay practices, woman and
people of color must stand up for equal pay, and we must push for new legislation
spelling out equal pay requirements.
A strong economy can sustain fair pay for all workers. And an economy in which all people
regardless of gender or race are paid fairly and well will grow even stronger.
INTRODUCTION
What is pay equity? It is a means of eliminating sex and race discrimination in the
wage-setting system. Most women and people of color are still segregated into a small
number of jobs such as clerical, service workers, nurses and teachers. These jobs have
historically been undervalued and continue to be under paid because of the gender and
race of the people who hold them. Pay equity means that the criteria employers use to set
wages must be sex- and race-neutral.
ANALYSIS 
Two laws protect workers against wage discrimination. The Equal Pay Act of 1963 prohibits
unequal pay or "substantially equal" work performed by men and women. Title VII of the
Civil Rights Act of 1964 prohibits wage discrimination on the basis of race, color, sex,
religion or national origin. In 1981, the Supreme Court made it clear that Title VII is
broader than the Equal Pay Act, and prohibits wage discrimination even when the jobs are
not identical. However, wage discrimination laws are poorly enforced and are extremely
difficult to prove and win. Stronger legislation is needed to ease the burden of filing
claims and clarify the right to pay equity. 
The wage gap exists, in part, because women and people of color are still segregated into
few low-paying occupations. More than half of all women workers hold sales, clerical and
service jobs. Studies show that the more an occupation is dominated by women or people of
color, the less it pays. Part of the wage gap results from differences in education,
experience or time in the workforce. But a significant portion cannot be explained by any
of those factors; it is attributable to discrimination. In other words, certain jobs pay
less because women and people of color hold them. 
THE WAGE GAP: 1998
1998 Median Annual Earnings of Year-Round, Full-Time Workers
All Men $35,345 (100%)
All Women $25,362 (73%)
Men Women
White $36,172 $26,243
Black $27,050 $22,648
Hispanic $22,285 $19,221
Source: US Census Bureau, Current Population Reports
The wage gap has narrowed by about twelve percentage points during the last fourteen
years, ranging from 61 percent in 1982 to 73 percent in 1998. Since 1973 however,
approximately 60 percent of the change in the wage gap is due to the fall in men's real
earnings. About 40 percent of the change in the wage gap is due to the increase in
women's wages. The wage gap has fluctuated often ranging from a low of 57 percent in the
mid 1970's, and peaking at 74 percent in 1996. Currently the national average wage gap is
27 cents, 37 cents for African-American women, and 47 cents for Hispanic women.
Many employers have used job evaluations for nearly a century to set pay and rank for
different occupations within a company or organization. Today, firms that use some form
of job evaluation employ two of three workers. The federal government, the nation's
largest employer, has a 70-year-old job evaluation system that covers nearly two million
employees.
Women, people of color, and white men who work in jobs that have been undervalued due to
race or sex bias need pay equity. Many are the sole support for their families. In
addition, it is estimated that 70 percent of women with children under 18 work.
Discriminatory pay has consequences as people age and across generations. Everyone in
society is harmed by wage discrimination. Therefore, everyone needs pay equity.
Workers become self-sufficient and reduce their reliance on government assistance
programs through pay equity. A recent study found that nearly 40 percent of working poor
women could leave welfare programs if they were to receive pay equity wage increases. Pay
equity can bring great savings to tax payers at a minimal cost to business. Adjustments
would cost no more than 3.7 percent of hourly wage costs. 
Federal law prohibits reducing pay for any employee to remedy discrimination, so the
white men's wages would not be reduced if pay equity were implemented. Furthermore, male
workers in female-dominated jobs benefit when sex discrimination is eliminated, as do
white workers in minority-dominated jobs. Pay equity means equal treatment for all
workers. 
Supply and demand is not tamper with by pay equity, nor does pay equity mandate across
the board salaries. It merely means that wages must be based on job requirements like
skill, effort, responsibility and working conditions without consideration of race, sex,
or ethnicity.
The Equal Pay Act, minimum wage, and child labor laws all provoked the same concerns, and
all were implemented without major disruption. What disrupts the economy and penalizes
families is the systematic underpayment of some people because of their sex or race. When
wages for women and people of color are raised, their purchasing power will increase,
strengthening the economy. One survey found that a growing number of businesses support
the elimination of wage discrimination between different jobs as "good business" and pay
equity is not inconsistent with remaining competitive.
Pay equity is a growing national movement. Twenty states have made some adjustments of
payrolls to correct sex or race bias. Seven of these states had successfully completed
full implementation of a pay equity plan. Twenty-four states have conducted studies to
determine if sex was a wage determinant. Four states have examined their compensation
systems to correct race bias, as well. On the federal level, the Fair Pay Act has been
introduced in the U.S. House of Representatives by Congresswoman Eleanor Holmes-Norton,
and in the Senate b y Senator Tom Harkin. The Fair Pay Act would expand the Equal Pay
Act's protections against wage discrimination to workers in equivalent jobs with similar
skills and responsibilities, even if the jobs were not identical. In addition, the
Paycheck Fairness Act has been introduced in the Senate by Senator Tom Daschle and in the
House by Congresswoman Rosa Delauro. The Paycheck Fairness Act would amend the Equal Pay
Act and the Civil Rights Act of 1964 to provide more effective remedies to women who are
not being paid equal wages for doing equal work.
CONCLUSION
In conclusion, pay equity is a benefit to everyone. There is still work that needs to be
done. Women and people of color need to understand that they aren't being fairly paid and
need to let their voices be heard. They can do this by contacting their local state
representatives, the Senators, and Congress people. We must be heard and fight for what
we should already have. That is pay equality. 
We can and must pay women and people of color the same as men. An economy with the
strength and profitability of ours can surely sustain fair pay for all workers. And an
economy in which all people regardless of gender or race are paid fairly and well will
grow stronger.
RECOMMENDATION
First, we need to keep affirmative action programs in place to make sure education, jobs
and promotion opportunities are open and offered to qualified women, because even with
all the progress women have made, the playing field is still not level. 
Second, employers must examine and correct their pay practices. If companies do not have
internal self exams then they can get it in the form of guidelines for an equal pay
self-audit available from the U.S. Department of Labor.
Third, women must stand up for equal pay. That begins with deciding where to work. If an
employer can't or won't show women and men are paid equally for the job you're seeking
and for other jobs, it makes sense to look elsewhere. Positive signs include a hiring
process that seeks diversity through affirmative action written pay and benefit policies,
job descriptions and evaluation procedures with employee input. Even very small companies
can and should have such policies. Women who experience pay discrimination where they
work need to first discuss the problem with their employer and ask for the same pay men
earn. If there's a union for employees, ask their help too. If discrimination persists,
you have the right to file a complaint with the local or state fair employment agencies
or with the U.S. Equal Employment Opportunity Commission. Pay discrimination based on
gender or race is against the law.
A fourth way to close the pay gap is through new legislation spelling out equal pay
requirements. That's not a solution popular with employers, but it may be necessary.
Unfortunately, some employers seem unwilling to correct pay discrimination. For them
stiff legal penalties or EEOC action may be the only remedies. 
Accepted and Approved
____________________ __________________
Hope McPherson Dan Johnson
APPENDICES
THE WAGE GAP BY EDUCATION
1998
Following are wages reflecting the median earnings in 1998 for full-time, year-round
workers, 25 years and older
H.S. Grad B.A. Degree Master's Doctorate
All Men $30,868 49,982 60,168 69,188 
White 31,562 50,614 60,177 71,715 
Black 25,203 41,310 42,323 ---
Hispanic 25,602 38,078 61,928 ---
H.S. Grad B.A. Degree Master's Doctorate
All Women $21,963 35,408 42,002 52,167
White 22,438 35,408 42,002 51,662
Black 19,381 35,339 40,766 ---
Hispanic 19,826 32,289 42,400 ---
Key Findings:
? Female college graduates are behind male college graduates by $14,574.
? A black college educated female earns $15,275 less annually than the college educated
white male.
? A Hispanic college educated female makes $18,325 less annually than the college
educated white male.
WORKS CITED
Census Bureau, March Current Population Survey, 1998.
Kiefer, Francine. "Clinton's wage gap plan may boost Gore." The Christian Science 
Monitor, Tuesday, January 25, 2000. 
BPW/USA 2000. Pay Equity and Women. September 1999. www.bpwusa.org.