Women continue to earn less than men - but why?

Today's post comes from G.Neil's HR News Weekly:

For all the professional gains women have made over the years, gender-based wage discrimination persists. This was a key finding in a public forum held by the U.S. Equal Employment Opportunity Commission (EEOC) in late April.  The forum, which was attended by government and private-sector experts, was just one of 24 events the federal agency is sponsoring nationwide in April and May to bring attention to the problem of wage discrimination. The EEOC is a primary member of the National Equal Pay Enforcement Task Force, created by President Obama to “improve compliance, public education, and enforcement of equal pay laws.”

A representative from Catalyst – a nonprofit membership organization dedicated to expanding opportunities for women in business – expressed concern about the gender leadership gap that accompanies the pay gap. She shared that over 98% of Fortune 500 companies are led by male CEOs, and that women at these companies start off with salaries $4,600 less than men.

“ … studies show that a significant portion of the wage disparity cannot be explained by differences in experience, specific work performed, education or other nondiscriminatory factors,” said EEOC Chair Jacqueline A. Berrien. “This persistent disparity is a stark reminder that the EEOC’s work to end every form of sex discrimination in the workplace – including compensation discrimination – is still unfinished business.”

Women continue to earn less than men - but why?

Unpaid internships a "no-no" with Department of Labor

While job openings are certainly scarce during these recessionary times – and companies are looking for ways to cut costs - those aren’t excuses for doling out unpaid internships to young people eager to get a foot in the door. Federal and state regulators are concerned that employers are abusing internships and using them, in a sense, for free labor.

In fact, the DOL plans to crack down on employers who offer unpaid internships, taking the position that interns are entitled to wages under the Fair Labor Standards Act (FLSA). And to support that position, the previously flexible interpretations of whether or not to pay interns are about to get much stricter.

"If you're a for-profit employer or you want to pursue an internship with a for-profit employer, there aren't going to be many circumstances where you can have an internship and not be paid and still be in compliance with the law," said Nancy J. Leppink, director of the Department's Wage and Hour Division.

In general, for an unpaid internship to be lawful under the FLSA, the intern must be properly classified as a "trainee" rather than an "employee." To help you determine this, the DOL has developed a six-factor test.

Interns are likely to be deemed “trainees” if:

1) The training is similar to what might be offered in an academic institution or vocational school.
2) The training is for the benefit of the trainees.
3) The trainees do not displace regular employees, but work under their close supervision.
4) The employer derives no immediate benefit from the training, and occasionally the employer's operations may be impeded by the training.
5) Trainees are not entitled to a job at the end of the training period.
6) The employer and trainees understand that the trainees are not entitled to wages for time spent in training.

In the meantime, legal experts offer this advice: Assume that all unpaid internships are unlawful, and carefully tailor your training programs for new or prospective employees to avoid liability.

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Unpaid internships: A rip-off or legitimate resume booster?

Unpaid internships a "no-no" with Department of Labor

President signs equal pay for equal work bill

This morning, President Barack Obama signed the Lilly Ledbetter Fair Pay Act into law, an equal-pay bill that will make it easier for employees to sue for pay discrimination.

As Obama signed his first piece of legislation as President, he ended a 2007 Supreme Court decision that said workers must file a pay-discrimination lawsuit within 180 days of a company’s initial decision to pay them less than another worker performing the same job.

Throughout his campaign, Obama promised to sign the bill, which became a focal point for labor and women’s groups.

From President Obama’s statement on the law this morning:

It is fitting that with the very first bill I sign - the Lilly Ledbetter Fair Pay Restoration Act - we are upholding one of this nation's first principles: that we are all created equal and each deserve a chance to pursue our own version of happiness.

... So in signing this bill today, I intend to send a clear message: That making our economy work means making sure it works for everyone. That there are no second class citizens in our workplaces, and that it's not just unfair and illegal - but bad for business - to pay someone less because of their gender, age, race, ethnicity, religion or disability. And that justice isn't about some abstract legal theory, or footnote in a casebook - it's about how our laws affect the daily realities of people's lives: their ability to make a living and care for their families and achieve their goals.

It is estimated that women are still paid about 78 cents for every dollar that men are paid for doing equal work, according to 2008 Census Bureau statistics.

The Act is named after a former Goodyear employee who didn’t become aware of a pay discrepancy until the end of her career. She sued, but the Supreme Court ruled in 2007 that she missed her chance.

The Ledbetter Act will amend the 1964 Civil Rights Act to reach farther than gender to include pay discrimination based on factors such as race, religion, national origin, disability or age.

President signs equal pay for equal work bill