Washington, D.C. – Today, Congresswoman Stefanik introduced the Wage Equity Act, legislation to ensure women receive equal pay for equal work.
“The Wage Equity Act is a practical, 21st-century solution to finally achieve equal pay for equal work by empowering businesses and employees to work together in pursuit of this common goal,” said Congresswoman Stefanik. “The Democrats’ alternative legislation would pave the way for frivolous lawsuits and unnecessary burdens on businesses, including those owned and operated by women themselves.”
“Leading retailers are committed to building a 21st Century Retail workforce that is diverse, innovative, and skilled. Adopting fair and equitable hiring and pay practices supports this mission and improves outcomes for all stakeholders, including workers and employers. For these reasons, we urge members to support the Wage Equity Act,” stated Evan Armstrong V.P Workforce Policy, RILA.
Modeled after bipartisan legislation that has been signed into law in states across the country, the bill encourages employers to proactively evaluate their pay practices and eliminate pay disparities in their workplaces, while empowering employees to negotiate pay based on their qualifications and merit.
Congresswoman Stefanik’s Wage Equity Act contrasts with the Democrats’ Paycheck Fairness Act, which benefits trial lawyers over working women, limits the rights of prospective employees in the hiring process, and impedes American job creators with millions of dollars in compliance costs.
Specifically, the Wage Equity Act would empower women in the 21st-century workplace by:
- Strengthening the Equal Pay Act to ensure differences in pay must be based on legitimate business reasons.
- Encouraging businesses to undergo a voluntary pay analysis to proactively rectify disparities.
- Authorizing a grant program to educate women in college, career, and technical programs on negotiating pay.
- Allowing employees to voluntarily disclose prior salary history.
- Protecting the ability of employees to discuss compensation with their colleagues but gives employers the right to set reasonable limitations on time, location, and manner of those discussions.
- Protecting employers’ ability to have a salary expectation conversation with prospective employees.
- Instructing the Government Accountability Office (GAO) to conduct a study on the causes and impacts of the “managers gap” (the time when many women leave the workforce for parental/family reasons).
In contrast, the Democrats’ Paycheck Fairness Act empowers trial lawyers over employees and employers, and intrudes on American businesses by:
- Establishing an unworkable standard for employers to defend against lawsuits when a pay disparity is based on legitimate factors other than sex.
- Requiring the Equal Employment Opportunity Commission (EEOC) to collect intrusive data on employees based on compensation rates, sex, race, and national origin.
- This action would cost an estimated $600 million for employers each year.
- Expanding class action lawsuits and requiring parties who do not wish to pursue a claim to affirmatively opt-out of one.
- Opening claims to unlimited compensatory or punitive damages, even if there is no finding of intentional discrimination.
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