Obama Admin Seeks to Force Companies to Turn Over Employee Data for Equal Pay Measure

Obama to Push Equal Pay Rules

The thing that is most frustrating is that Obama and his crew of equal pay advocates ignore human nature and standard business practice which is that an employer wants to pay as little as possible for the work that is required. If women could or would perform the same jobs at the same level as men, all other things being equal, an employer would have to be brain dead to not hire a woman so that he could save 20% of the “male” salary premium. Many studies have done the research, and after taking into consideration the variables between men and women, the finding is that there is an equilibrium where men and women do make the same amount of money for the same job if all other considerations are equal.

Notwithstanding those findings, the new policy will roll out and require new costs and time to implement as businesses are forced to respond to the illogical requirements.

White House and administration officials announced the measure in a call with reporters Thursday evening, but a more formal announcement is planned for Friday to mark the seventh anniversary of the Lilly Ledbetter Fair Pay Act. The law, which Obama signed in 2009, aims to make it easier to challenge unequal pay by giving workers 180 days from the receipt of each discriminatory paycheck to file a lawsuit.

The Equal Employment Opportunity Commission (EEOC) is issuing the rule in partnership with the Department of Labor (DOL). EEOC Chair Jenny Yang said companies will report this new information on a new version of the commission’s longstanding EEO-1 form, which now requires employers with 100 employees or more to report demographic information on the total number of employees they have in 10 different job categories.

“Collecting pay data will help fill a critical void in information we need to ensure Americans aren’t short-changed for their hard work,” she said.

The EEOC is expecting to use the data to aid investigations, assess complaints and identify existing pay disparities that warrant further examination.

“We anticipate completing the rule no later than September 2016, which means the first reports would be due September 30, 2017,” Yang said.

Compliance costs are estimated to be $400 initially per company and around $200 yearly after that. Because the EEOC is accepting public comments on the rule through April 1, Yang said estimates could change depending on industry feedback.

On Friday, President Obama will also call on Congress to pass the Paycheck Fairness Act, legislation introduced in the Senate by Sen. Barbara Mikulski (D-Md.) and in the House by Rep. Rosa DeLauro (R-Conn.). The bill would force employers to prove pay disparities are truly based on performance, not gender.

The big problem here is that bureaucrats somewhere in Washington D.C. will be tasked with deciding job equivalencies. It will never be apples to apples, but they will surely decide that, for example, a janitor (typically male) provides the same work equivalency as a school secretary, and so they must be paid the same. And the judgements will be even worse when government drones develop equivalencies for the private sector, which they know nothing about. And so it goes, with the underworked, overcompensated, clueless government workers imposing themselves more and more into a realm they will never understand and could not survive in for more that a few weeks. And Barack Obama is at the head of the pack.

Source: thehill.com



Leave a Reply

Pin It on Pinterest