WAGE INEQUALITY 1

Wage Inequality
Mary Collins
Siena Heights University
LDR 604: Ethics and Social Justice
Dr. Patricia L. McDonald
April 21, 2021
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Wage Inequality

Social justice is a philosophy which advocates for the removal of inequalities among

individuals. As society continues to evolve, so do the prevailing social justice issues within it.

One issue that has remained a focal point in society for well over sixty years is the wage

disparity between gender and race. In 1960, a woman earned sixty cents for every dollar a man

earned (King, 2018). According to the Bureau of Labor Statistics data in 2020, the annual

earnings for women were only 82.3% of men’s, with an even wider gap for minority women, in

most all occupations (Jones, 2021).

President Joseph R. Biden proclaimed March 24, 2021 as National Equal Pay Day. Equal

Pay Day represents how far into the year women must work to equal what men earned the

previous year. Although Equal Pay Day is earlier this year than it has been in the past, the level

of disparity between wages due to gender is still very concerning (Laughlin & Wisniewski,

2021). In his proclamation, President Biden acknowledged that concern by stating that equal pay

for women and minorities is vital to the values of equity and opportunity that define our society,

and although we have made significant improvements in the last several years, there is still

notable work to be done (WH, 2021).

Current Legislation

In 1963, the Equal Pay Act was signed into law making it illegal to pay different wages to

men and women if they perform equal work in the same place (EEOC, 2021). The Equal Pay

Act helped create an awareness to an elevating social justice issue, and the need to eliminate the
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gap in wages as more women were entering the workforce. The Act also provided resources for

an employee to take legal action against their employer for wage violations.

In 1964, shortly after the passing of the Equal Pay Act, Title VII of the Civil Rights Act

was enacted. Title VII prohibits discrimination based on race, color, religion, gender, pregnancy

or national origin in almost every facet of society (SHRM, 2021).

In 2009, the Lilly Ledbetter Fair Pay Act was signed into law. The Lilly Ledbetter Fair

Pay Act allows for each paycheck that contains a discriminatory compensation practice to be

treated as a separate violation. This act is important in that it helps to ensure that those that are

harmed by unlawful wage discrimination can utilize their rights under law (NWLC, 2009).

Current State of Equal Pay

Progress has been made in tightening the wage gap, but the rate has been slower than

anticipated. According to the American Association of University Women (AAUW), if change

continues at the rate we have seen since the early 2000’s, wage equity between men and women

will not be obtained until 2119 (Miller, 2016). The question remains as to what societal or

organizational variables exist that continue to perpetuate this wage gap considering all the

legislation making it an illegal practice.

Women’s Role in Society

It seems that wage inequity between men and women still exists due to the lingering

perception of women’s role in society, and their relationship between work and other priorities

outside of work, including their family. “Women earn less simply because they are women”

(Leith, 2014). These priorities, especially family and motherhood, can lead to interruptions in a

woman’s career journey which can often impact their earnings long-term (Graf, et al, 2018). A
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survey conducted by the Pew Research Center found that mothers experience more career

interruptions than fathers by the following percentages: reduced work schedule – 14%, time off

from work – 15%, turning down a promotion – 3% and quitting a job – 17% (Graf, et al, 2018).

Minorities

With the onset of heightened awareness around racial issues in our society, further

attention is being given to the wage gap surrounding minorities, particularly black men and

women (Miller, 2020). In the United States, black men earned on average eighty-seven cents for

every dollar earned by a white man. Hispanic men and women earned ninety-one cents for every

dollar earned by a white man. However, black and white men with comparable experience and

education doing the same job in the same location only saw a wage gap of about 2% (Miller,

2020). This research indicates that earnings were more equitable within similar or controlled

environments.

The wage gap for black women is significantly more concerning. Black women earned

only 63 cents for every dollar earned by a white man, which is also on average nineteen cents

less than earnings by white women (Miller, 2020).

COVID-19 Pandemic

The COVID-19 Pandemic has created a focus on essential workers, and the critical role

that they have played in the economy throughout the pandemic. Thirty-four million women

work in jobs considered essential, including roles in health care and education, however the

disparity in earnings between men and women in these essential roles persists (Laughlin &

Wisniewski, 2021). This wage gap issue has become heightened due to the fact that women are
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not just expected to continue to do the same job as men with less pay, they are expected to do a

job with more risk to their safety and wellbeing with less pay.

The pandemic also contributed to a reduction in the labor force that negatively impacted

women almost three times greater than men. School and child-care closures resulted in

approximately 865,000 women, compared to 216,000 men, having to leave their place of

employment to take care of their families in the US alone. Those women that were able to

remain employed requested reduced work schedules four to five times more than men (Kashen,

et al., 2020). This recent disruption in the labor force contributed to the perception that women’s

priorities will often be to their families instead of their career.

Geographic Impact

According to the National Women’s Law Center (2020) Wage Gap Overall State

Rankings in 2019, 31 states in the country have gender pay gaps larger than the national average

of eighteen percent. In 2015, there were 32 states that exceeded the national average so there has

been very little progress in four years. In Louisiana, the wage gap is the largest at thirty-one

percent, while California and New York have the smallest wage gap at twelve percent. Michigan

ranks number 34 out of 50 states with a gender wage gap of twenty-one percent (NWLC, 2020).

Organization/Leader Responsibility to Fair Wages

Organizations and their leadership, in collaboration with Human Resources, need to

develop a compensation system that is fair and ethical for people of all genders and races. This

system also needs to be attractive and competitive to recruit and retain a talented and engaged

workforce. The compensation model should not be just about pay, but a total rewards system

that focuses on benefits and work-life balance. Organizations need to focus on paying their
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employees for the work that they do and not on the hours that they may or may not put in. This

would help reduce the stigma associated with women that leave work at the end of their eight

hours to take care of their family (Leith, 2014).

Pay Equity Audits

Regular audits can help an organization discover where they have weaknesses in their

pay structure so that they can be reviewed and resolved. Pay equity audits can identify a

problem or improve a stakeholder’s perception of an observed pay disparity (Sheen, 2019). They

can also provide a chance for an organization to address and correct issues proactively, which

can reduce legal and financial risk to the company (Sheen, 2019).

Job Description Review

Organizations should review their job descriptions to ensure that they have been updated

to reflect what it really takes to do the job. Minimum requirements for years of related

experience should be reasonable to not negatively impact women that have taken time off from

work to care for their family. In addition to education and work experience, organizations

should identify what preferred qualifications are crucial to the position and what would the

necessary wage be to attract and retain the right candidate. Employers should look at what

women bring to the role beyond the job description and whether the pay is aligned to the work

that is being done (King, 2018).

Employee/Stakeholder Responsibility to Fair Wages

Women and minorities have a large role in ensuring that they are paid equitably for the

job that they are doing. Before accepting a position or a promotional opportunity, women should

research salaries for their industry, job title and location. King (2018) states that women have a
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responsibility to educate themselves on their worth. It is vital for women and minorities to be

comfortable and confident in negotiating a fair wage.

Women and minorities should also continue to educate or retrain themselves to obtain the

skills they need to remain relevant in an ever-evolving workforce (King, 2018). This is

especially important for women that have taken time away from work due to child and family

obligations.

Pending Legislation

On April 15, 2021, the U.S. House of Representatives passed the Paycheck Fairness Act.

This legislation, once passed, would require employers to prove that wage disparities between

men and women are job-related (Smith, 2021). In addition, the Paycheck Fairness Act would

also make it easier for employees to challenge systemic pay discrimination in a court of law,

prohibit employers from asking job applicants about their salary history or using that history to

determine wages, and prohibit employers from retaliating against employees who discuss their

compensation with other employees (Smith, 2021).

Conclusion

Society needs to closely examine and redefine the gender roles and perceptions that

continue to exist today. We cannot afford to wait until 2119 for the wage gap to close. It is

important for women and minorities to feel empowered to push for more change, more quickly to

positively impact this very important social justice issue. Organizations need to ensure that their

compensation practices and philosophies are not only legal and ethical, but in the best interests of

all stakeholders.
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References

EEOC (2021). The equal pay act of 1963.

Retrieved from https://www.eeoc/gov/statutes/equal-pay-act-1963

Graf, N., Brown, A., & Patten, E. (2018). The narrowing, but persistent, gender gap in pay.

Retrieved from http://www.pewresearch.org/fact-tank/2018/04/09/gender-pay-gap-facts/

Jones, J. (2021). 5 facts about the state of the gender pay gap. U.S. Department of Labor Blog.

Retrieved from https://blog.dol.gov/2021/03/19/5-facts-about-the-state-of-the-gender-

pay-gap

Kashen, J., Glynn, S.J., & Novello, A. (2020). How covid-19 sent women’s workforce progress

backward. Center for American Progress. Retrieved from

https://www.americanprogress.org/issues/women/reports/2020/10/30/492582/covid-19-

sent-womens-workforce-progress-backward/

King, M. (2018). Tackling the number one cause of gender inequality at work: Unequal pay.

Forbes. Retrieved from https://www.forbes.com/sites/michelleking/2018/03/07/tackling-

the-number-one-cause-of-gender-inequality-at-work-unequal-pay/#137214335f09/

Laughlin, L., & Wisniewski, M. (2021). Women represent majority of workers in several

essential occupations. United States Census Bureau. Retrieved from

https://www.census.gov/library/stories/2021/03/unequally-essential-women-and-gender-

pay-gap-during-covid-19.html
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Leith, L. (2014). Why do women still earn less than men? Bureau of Labor Statistics. Retrieved

from https://www.bls.gov/opub/mlr/2014/beyond-bls/why-do-women-still-earn-less-than-

men.html

Miller, S. (2020). Black workers still earn less than their white counterparts. SHRM. Retrieved

from https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/racial-wage-

gaps-persistence-poses-challenge.aspx

NWLC (2020). Wage gap overall state rankings in 2019.

Retrieved from https://nwlc.org/wp-content/uploads/2019/10/Overall-Wage-Gap-State-

By-State-2020.pdf

SHRM (2021). Title VII of the civil rights act of 1964.

Retrieved from https://www.shrm.org/hr-today/public-policy/hr-public-policy-

issues/pages/titleviiofthecivilrightsactof1964.aspx

NWLC (2009). The lilly ledbetter fair pay act of 2009.

Retrieved from https://nwlc.org/wp-

content/uploads/2015/08/lilly_ledbetter_fair_pay_act_of_2009_01.07.2013.pdf

Sheen, R. (2019). Why your company needs to implement pay equity audits now. Harvard

Business Review. Retrieved from https://hbr.org/sponsored/2019/10/why-your-company-

needs-to-implement-pay-equity-audits-now
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Smith, A. (2021). U.S. House of representatives passes paycheck fairness act. SHRM. Retrieved

from https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-

law/pages/house-passes-paycheck-fairness-act-2021.aspx

WH (2021). A proclamation on national equal pay day, 2021. Retrieved from

https://www.whitehouse.gov/briefing-room/presidential-actions/2021/03/24/a-

proclamation-on-national-equal-pay-day-2021/