How #EqualPay policing of private businesses is government overreach (VIDEO)
Yesterday, was Equal Pay Day.
President Barack Obama signed two executive orders that would 1. prohibit federal contractors from retaliating against employees who choose to discuss their compensation; and 2. empower the US Department of Labor to collect summary data on compensation by race and sex and use that data to encourage compliance with equal pay laws and target enforcement.
This week, for the 3rd time, Congress will consider the Paycheck Fairness Act introduced by my senator Barbara Milkulski from Maryland with co-sponsors of 52 Democrats. The law would, among other things, empower the Labor Department to collect pay data from private employers and use that data in their enforcement efforts.
I’m all for policies that discourage discrimination and help minorities and women fight bias, however, as a private employer and business person who has hired employees and contractors, these efforts may be overreaching.
First, I’m not sure the stat that says men are paid $.77 to the dollar a man is paid is accurate. See an infographic on my sister blog HERE that addresses it.
And certainly, women being the caregiver often in many households prohibit them from being able to work the extra hours, pick up extra cases and workload as their male counterparts, thereby giving them less opportunity to be eligible for pay bonuses perhaps that come with extra commission, for example. It is unfortunate, but not a reason to punish employers. All pay does not have to be equal. A single childless woman may be earning more than a single Dad and those situations also exist, but you’d hear few complaining about that.
But beyond those scenarios, there are several subjective nuances and variances that go into pay that may not be evident in “summary” data. Therefore, private sector employers are at risk of being punished for making private HR decisions in pay and advancement that makes sense for their business to thrive. The laws and policy do not recognize these situations.
I offer three examples in my latest Vlog: