prohibits wage disparity based on sex. PFA focuses on increasing employer accountability, providing educational tools for women to negotiate for equal pay, and enhancing federal outreach and enforcement efforts ensuring pay equity. Why do we need PFA? Wage disparity is alive and well. According to the 2007 "Behind the Pay Gap" study, women make only 77 cents to every dollar a man makes. Arkansas ranks 35th with a 71% wage gap. This wage gap starts early--women one year out of college who are working full time make 80% what their male colleagues earn.
Opponents of PFA argued that it would increase the burden of proof on the employer, requiring them to establish a legitimate "business reason" for unequal pay. Business bureaus claimed this would put undue pressure on small businesses struggling to make it in today's economy.
AAUW countered the grumbles of business bureaus by reminding them that small business are already protected from unfair litigation. PFA would keep intact the Equal Pay Act's exemption of businesses who gross less than $500,000 per year, and would only overturn Title VII of the 1964 Civil Rights Act that exempts employers with fewer than 15 employees. "Businesses with fewer than 15 employees can still make huge profits," stated AAUW Public Policy Fellow Emily Pfefer. "Whether women are employed at a local mom and pop for a Fortune 500 company, there's no excuse for paying women less than men for the same work." (see full quote HERE)
AAUW also noted PFA would benefit both women and men since many women are the primary bread winners for their families. Additionally, all employees would be protected from employer retaliation if they were to inquire about wage practices.
Despite the bill's success in the House over a year ago, the Senate failed to bring PFA to cloture. All Democrats except for Nebraska's Nelson supported the bill, but not a single Republican cast a vote for the bill. See vote roll call HERE.
"This is a missed opportunity to make history and jump start real economic change for American workers and their families," said AAUW Executive Director Linda D. Hallman. "While the Senate's action is difficult to comprehend given the stark reality that most families depend on the paychecks of women, our effort to close the pay gap is far from over." (see AAUW's official response HERE)
Learn more about AAUW's continued fight for pay equity HERE.
