When the Fair Pay Act was first passed in 1963 it was created in order to equalize the wages for men and women. It states that employers can use people's merit, ability, or productivity, but not their sex, in order to decide on the salary that a person should receive.It also allows for lawsuits to be filed and provides compensation if a person has been discriminated against. However, to say that this law completely changed the way the business world works, would not be accurate.According to this study there always was a gender wage gap, and that now the ratio of women's median pay to men's median pay is on the rise again and currently it is 75 percent. In this article from CBS a study done by American Association of University Women, in 2007 is mentioned and it says that after college graduation, the gap is about 30 percent.
In 2009, the newly elected President Obama, signed his first bill into law, which was the Lilly Ledbetter Fair Pay Act. It provides minorities with tools to challenge discrimination. After working for a company for 19 years, Lilly Ledbetter sued the company for not paying her the same wage that men in the company received. The case went to the Supreme Court and it ruled against her. But in January, Congress approved the bill, which expanded workers' rights to sue a company, if they are being treated unfairly. Now individuals that are being discriminated against based not only on their sex, but also on race, age, and nationality, can challenge each unfair paycheck they receive.
An article in CNN discusses the controversy of the act. It says that in order for businesses to protect themselves against unrighteous suits, they will have to document reasons for why a certain person is getting the pay that he or she is receiving. This is probably not a problem for big businesses that have attorneys and other professionals that could take care of documentation of such things, but it might be a problem for small businesses, that don't have that privilege. So one lawsuit, might destroy an entire small business. One congressman who voted against the bill, said that this law will produce more discrimination suits, and that that is a negative, because right now, small businesses are crucial to the economy. However, a lot of people think that the risks are worth it. Some say that it is a good thing for businesses to look at the wages that their employees are getting, and to make them equal, if necessary. I think that men and women should receive equal wages, because I don't see a reason for them not to. At the same time, I think that the law that Obama signed will create more suits and maybe that is a huge negative, since the economy is so shaky right now.
(photo by Stephen Crowley)
In 2009, the newly elected President Obama, signed his first bill into law, which was the Lilly Ledbetter Fair Pay Act. It provides minorities with tools to challenge discrimination. After working for a company for 19 years, Lilly Ledbetter sued the company for not paying her the same wage that men in the company received. The case went to the Supreme Court and it ruled against her. But in January, Congress approved the bill, which expanded workers' rights to sue a company, if they are being treated unfairly. Now individuals that are being discriminated against based not only on their sex, but also on race, age, and nationality, can challenge each unfair paycheck they receive.
An article in CNN discusses the controversy of the act. It says that in order for businesses to protect themselves against unrighteous suits, they will have to document reasons for why a certain person is getting the pay that he or she is receiving. This is probably not a problem for big businesses that have attorneys and other professionals that could take care of documentation of such things, but it might be a problem for small businesses, that don't have that privilege. So one lawsuit, might destroy an entire small business. One congressman who voted against the bill, said that this law will produce more discrimination suits, and that that is a negative, because right now, small businesses are crucial to the economy. However, a lot of people think that the risks are worth it. Some say that it is a good thing for businesses to look at the wages that their employees are getting, and to make them equal, if necessary. I think that men and women should receive equal wages, because I don't see a reason for them not to. At the same time, I think that the law that Obama signed will create more suits and maybe that is a huge negative, since the economy is so shaky right now.
(photo by Stephen Crowley)
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