Action Alert

Support Strong Pay Equity Bill

February 28, 2000




 
  • Take Action
  • Support the Fair Pay Act
  • Background
  • The Fair Pay Act
  • Pay Inequity Example: the Women's Soccer Team
  • Equal Pay Day
  • How to Reach Your Members of Congress
  • Sample Letter

  • TAKE ACTION:

    (sample letter below)

    Wage discrimination is suddenly a hot topic, partly because of the U.S. Women's Soccer Team pay controversy (see story below) Please help us keep up the momentum by writing to your Senator. You can help close the pay gap by supporting the Fair Pay Act (S.702/ H.R.1271) and asking your members of Congress to sponsor this bill and pass it this session, along with special funding for enforcement. See below for sample letter and email contacts.


    SUPPORT THE FAIR PAY ACT:

    Several bills have been introduced in Congress regarding wage discrimination: the Paycheck Fairness Act (S. 74/ H.R. 541) and the Fair Pay Act Fair Pay Act (S. 702/H.R.1271) (a much stronger bill). In addition, President Clinton announced an Equal Pay Initiative to close the pay gap between men and women. He proposed spending $27 million to improve enforcement if equal pay laws. Sen. Charles Robb (D-VA) is leading an effort to have the Senate authorize the additional funding. Place a call or send a fax or e-mail message to the Senate in support of the Fair Pay Act and the funds to enhance enforcement activities. Contact information and a form letter are provided at the end.


    BACKGROUND:

    Spurred on by the U.S. Women's Soccer team and with the help of soccer star Michelle Akers (see story below), President Clinton announced on January 24th that he is seeking a $27 million Equal Pay Initiative intended to close the wage gap between women and men. This initiative allocates $10 million to the Equal Employment Opportunity Commission (EEOC) to strengthen their ability to identify and respond to wage discrimination, teach employers and businesses how to meet legal requirements, and to disseminate public service announcements informing employers and employees of their rights and responsibilities. This initiative also appropriates $17 million to the U.S. Department of Labor (DOL) to train women in non-traditional jobs, make information concerning high-quality employment available, make career guidance accessible in a "One-Stop Career Center delivery system," assist employers in maintaining effective wage policies, and fortify industrial partnerships in order to help women progress in the workforce.

    In his State of the Union address, President Clinton urged Congress to pass the Paycheck Fairness Act (H.R. 541/S. 74) sponsored by Sen. Tom Daschle (D-SD) and Rep. Rosa DeLauro (D-CT). Although the President clearly understands the many unfair consequences of pay discrimination, his recommended bill does not go far enough. The Paycheck Fairness Act is very limited in that it expands the availability of damages under the Equal Pay Act 1963 (which affects only jobs that are nearly identical), develops fair pay guidelines that would be voluntary for employers, and prohibits employers from retaliating against those employees who inquire whether their own pay is fair.



     

    THE FAIR PAY ACT:

    The Fair Pay Act is a much stronger bill (S. 702/H.R.1271) sponsored by Sen. Tom Harkin (D-IA) and Rep. Eleanor Holmes Norton (D-DC), which seeks to end pay discrimination against women who work in female-dominated job categories by addressing the equivalency of different jobs. The Fair Pay Act would prohibit employers from paying lower wages to women (working at jobs held predominantly by women) than they would pay men (in predominantly male-held job categories) if those jobs are equivalent in value to the employer. This is an approach which overcomes several of the persistent obstacles to reaching pay equity - that is, many jobs are equivalent but not identical and women and people of color tend to be relegated to the ones that are traditionally lower-paying.

    One negative aspect of the Fair Pay Act, however, is a small business exemption, which would create an exception for employers with 25 or fewer employees, initially, and then later for employers with 15 or fewer employees.

    "The pay gap exists," according to the National Committee on Pay Equity (NCPE), "in part, because women and people of color are still segregated into a 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." Another part of the wage gap is due to a difference in education, experience or time in the workforce. However, the biggest part of the pay gap can only be explained as the result of discrimination.

    The impact of the wage gap follows women throughout their lives. As Social Security is based on earnings, the less a woman earns, the less she will receive in benefits down the road when she begins to collect Social Security; and fewer women than men have a pension through their employers. President Clinton emphasized that, "keep[ing] in mind that the pay gap is 75 percent - the average woman who is about to retire, if she even gets the pension in the first place, can expect only half the pension benefits of the average man who retires."

    There should be little wonder that there is such a high poverty rate among older women.

    After accounting for education, age, pay, geographic area, and the number of hours worked, this gap translates to a loss of about $4,000 in annual income for employed women's families, according to a February 1999 study by the Institute for Women's Policy Research (IWPR) and the AFL-CIO. This amount summed over a 35 year working history amounts to a substantial loss; for higher earners, of course, the cumulative impact of pay discrimination throughout a lifetime career represents an enormous loss.

    One popular misconception is that women earn less than men because they work fewer hours. However, the statistic that women earn $ .73 to every man's dollar does not factor in part-time workers. Full-time women workers earn 73% of what full-time working men earn (these figures are based on the information available between 1997-98).


    PAY INEQUITY EXAMPLE: U.S. WOMEN'S SOCCER TEAM

    The dispute between the Women's Soccer team and the U.S. Soccer Federation is an excellent illustration of the huge disparity that still exists in funding for female and male athletics and the persistent pay gap in the workforce. Twenty members of the U.S. Women's Soccer team refused to play in an Australian tournament in January and demanded to be paid the same amount as the players on the Men's Soccer team. The Women's Soccer team in their 1996 agreement with the U.S. Soccer Federation were to be paid $3,150 per month for the most experienced players and about $250 for every game, while the Men's Soccer team received $5,000 per month and an additional $2,000 for the 18 players who were going to Australia (Washington Post, Jan. 24).

    "I have been on the team for 12 years and during that time we have had to have outside jobs to make a living,"said Co-Captain of the Women's Team Carla Overbeck at a press conference on February 1st, "Women have to be treated equally as men. I have been doing appearances on the side and people would come up to me and tell me that they are behind us. We believed what we're doing was right and had the support of the nation behind us. We had nothing to lose -- only the opportunity to make a statement for professional women sports."

    The U.S. Soccer President Dr. S. Robert Contiguglia announced on February 1st that the U.S. Soccer Federation and the Women's National Team have drawn a new five year contract that guarantees ongoing pay parity with the Men's National Team. The Women's Team will earn $2,000 per appearance, the same fee the men are paid, and the Women's Team's bonus for competition in major tournaments and wins will match that of the bonus awarded to the men's team.

    Soccer star Michelle Akers has been very outspoken about this issue and teamed up with President Clinton on January 24th to announce the Equal Pay Initiative. You can e-mail her your support at communications@ussoccer.org or write to her at U.S. Soccer House, 1801-1811 S. Prairie Avenue, Chicago, IL 60616.


    EQUAL PAY DAY

    May 11th is Equal Pay Day and scores of events are being panned to raise awareness about the pay gap. This date was derived by subtracting the 1998 average woman's salary ($25, 862) from the average man's salary ($35,345); the sum is $9,483 or 37% of the average woman's salary. It will take her 37% of the new year (135 days) in order for her to make up that difference.


    HOW TO REACH YOUR MEMBERS OF CONGRESS


    The main number for Congress is (202) 224-3121 or you can access web sites for the Senate and House of Representatives to send email messages. Be sure to include your snail mail address, especially if you live in the member's district. Please send a copy of your e-mails to govtrel@now.org. Thank you!
     

    Contact Your Senators: http://www.senate.gov/senators/index.cfm

    Contact Your Representative: http://www.house.gov/writerep/


    Sample Letter:

     

     
     
     
     
     

    The Honorable __________

    Senator

    United States Senate

    Washington, DC 20510

    Dear Senator ___________:
     

    Please support the Fair Pay Act (S. 702/H.R.1271) to begin closing the disparity between men's and women's incomes. This bill will require employers to base employees' pay on objective factors such as skill, education, level of responsibility, experience and working conditions -- to ensure that employees working equivalent jobs will receive equal pay.

    The Institute for Women's Policy Research and the AFL-CIO estimate that working women's families lose $4,000 annually in income because of inequitable pay. The AFL-CIO also reports that the average 29-year-old white woman with a Bachelor's degree will lose about $990,000 in pay during her lifetime. The average man of color will experience a similar loss, while the average woman of color may lose even more in wages. This discrepancy has a lifelong cumulative effect that reduces the economic well-being of millions of women, people of color and their families.

    Also, it is very important that you support efforts to provide an additional $10 million in funding to the Equal Employment Opportunities Commission (EEOC) for its handling of wage discrimination cases and to conduct public education and employer training. Another $17 million requested by the President will help the Labor Department train women in non-traditional jobs - jobs which usually pay higher wages - and to help employers develop programs to help women retain jobs and gain promotions. All these activities will strengthen women's economic status and diminish discrimination in pay.

    Thank you for your attention and I hope that you will be able to help us reach our goal of pay equity for all.
     
     

    Sincerely,
     
     
     
     

    Your Name






    (Note: If you want to send the letter to your House member as well, address your Representative as follows: The Honorable________, Representative, U.S. House of Representatives, Washington, D.C. 20515) Dear Representative __________:


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