This is the first post in a five-part series debunking the myths surrounding the Paycheck Fairness Act.
If you found your way to this blog, chances are you already know how much women need the Paycheck Fairness Act (S. 3772) to pass when the Senate reconvenes in mid-November. The act is a crucial update to Equal Pay Act of 1963 and will strengthen penalties for wage discrimination, make wage gaps harder to justify, and prohibit retaliation against employees who inquire into wage practices or reveal their own salaries, among other things.
America’s families need this legislation to help their continued economic recovery. Over the coming weeks, look to this blog for a series of five posts that will deconstruct critics’ arguments and help you build your case to encourage your senators to persevere in this final push.
Myth: Small businesses need current exemptions from equal pay laws.
Truth: Small businesses have all the protection they need from the existing Equal Pay Act exemption.
Title VII of the Civil Rights Act of 1964 exempts small businesses with fewer than 15 workers, and the Equal Pay Act exempts small businesses that make less than $500,000 in annual revenues per year. The Paycheck Fairness Act would keep the Equal Pay Act exemption intact, but the Title VII exemption would be overturned, since businesses with fewer than 15 employees can still make huge profits and get away with paying women less for equal work. Many businesses with few employees will still qualify for exemption under the $500,000 rule.
Given that one out of two workers nationwide is employed at a small business, keeping short-sighted exemptions on the books significantly diminishes women’s civil rights protections and stalls the nation’s economic recovery. Insisting that small businesses also follow fair pay requirements is crucial for the long-term goal of pay equity. Furthermore, small businesses should actually have an easier time than larger corporations ensuring pay equity by virtue of their small size and comparative lack of bureaucracy.
Whether women are employed at a local mom and pop or a Fortune 500 company, there’s no excuse for paying women less than men for the same work.
Click here to learn more about the Paycheck Fairness Act and how to contact your senators.
This post was written by Public Policy Fellow Emily Pfefer.
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