PayScale.com, PayScale
Jun 08, 2012
Pros and Cons of the Paycheck Fairness Act
As you may know, the Paycheck Fairness Act recently failed to progress to a vote in the Senate. This legislation could have greatly impacted both employees and employers. It is intended to update the Fair Labor Standards Act of 1938, and by extension the Equal Pay Act of 1963, by limiting acceptable reasons for differences in pay, increasing penalties for failing to meet standards, reducing small business exemptions and barring retaliation for the disclosure of salary information. Perhaps because of its potential to change so much, it is highly controversial.
Pros: Proponents of the bill argue that that the mechanisms introduced by the law would decrease income inequality in the United States.
Cons: Opponents of the bill counter that the legislation would place significant burdens on employers to fix something that may be beyond their control. Other opponents say the pay gap is largely driven by employee choices rather than employer discrimination.
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