“Equal pay for equal work” is a key talking point for President Obama’s re-election platform, and last night’s presidential debate gave both candidates the chance to discuss the growing issue of pay disparity between male and female employees. While Gov. Mitt Romney’s “binders full of women” comment in response to a question on this issue has gotten much attention, also worth noting are two key federal laws.
In the town-hall style debate, an undecided voter asked Obama and Romney how they planned to address the fact that female employees earn just over two-thirds the wages of male employees. Romney explained how as governor he staffed up his cabinet with more women, making the now infamous comment that he “went to a number of women’s groups and said, ‘Can you help us find folks, and they brought us whole binders full of women.”
In turn, Obama mentioned that Romney did not support the Lilly Ledbetter Fair Pay Act of 2009 and noted how his 2010 health reform law helps women.
While the Ledbetter Act certainly has advanced the cause of pay equality for women, it isn’t the first or only law to deal with gender pay disparity. The Equal Pay Act of 1963 amended the Fair Labor Standards Act to prohibit sex discrimination by paying employees of one sex less than employees of the opposite sex for work performed under similar working conditions on jobs that require equal skill, effort and responsibility.
The interaction of multiple laws, such as the Ledbetter Act and the Equal Pay Act, can get confusing. Every employer should know what laws apply to their business operations, and carefully ensure compliance in all aspects of the employment relationship, from hiring to promotions to terminations. Failure to comply with these laws could result in litigation and investigations by government agencies such as the U.S. Department of Labor.
For the full story, go to Thompson Publishing’s HRcomplianceeXpert.com.