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The PFA Bill -
Equal Pay: A Battle Is Brewing in the SenateBy JONATHAN BERR
Posted 6:30 AM 09/29/10
Daily FinanceFor decades, the question of why women are paid less than men
has vexed political and business leaders.
Now, as the midterm elections loom, the debate about this issue is heating up
in the U.S. Senate over the Paycheck Fairness Act (PFA).
Among other things, the bill would make it easier for women who allege discrimination
to file class actions against their employers. It also removes caps on punitive damages
under the Equal Pay Act. The bill passed the House last year.
Both the Obama Administration and Senate Majority Leader Harry Reid,
who's facing a tough reelection battle, support PFA.
But Republicans and Business Interest are against it, alleging it would open employers
to needless lawsuits. The bill's backers say that claim is baseless.
Up to $2 Million Less Over a LifetimeWomen, who are either the sole or co-breadwinner for about two thirds of U.S. households,
earn $11,000 a year less than men annually because they make less than men who do the same work,
according to NOW.
That disparity equals $400,000 to $2 million over a lifetime. A report released today by the
Government Accountability Office bolsters that argument, finding that female managers earn
81 cents for every dollar that a man earns.
Under the PFA bill, employers would be required to prove in court that factors other
than sex accounted for wage differences.
Critics, such as the National Association of Manufacturers, say the bill is the last thing
businesses need in a struggling economy.
"And really, you can't be for 'jobs' -- that is, new hiring and a lower unemployment rate -- and
seriously support the bill," writes Carter Wood on NAM's Shopfloor website.
"The additional rules and legal liability the bill would create would substantially raise
the marginal costs of every new hire."
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