A bill that would let employees of a company compare their pay without consequences drew fire from the business community last week on the grounds that it could lead to resentment in workplaces and possibly, less pay for everyone.
Sen. Deborah Simpson (D-Auburn) the lead sponsor on “An Act to Ensure Fair Pay,” told the Legislature’s Labor Committee last week that her bill would help further equalize pay for men and women, which is already required under Maine’s Equal Pay Law, passed in 1965.
The problem, said Simpson, is that there are barriers preventing women from knowing they’re being discriminated against in the first place.
“Many employers expressly or implicitly prohibit their employees from discussing their pay with each other, thereby keeping wage discrimination hidden,” Simpson told the committee. “Whether intentional or not, this has the effect of masking pay discrepancies.”
Simpson’s bill would outlaw retaliatory action against an employee for discussing or disclosing salary information with co-workers.
It comes on the heels of President Barack Obama’s signing of the Lilly Ledbetter Fair Pay Act, which allows a pay discrimination complaint within 180 days of a discriminatory paycheck, as opposed to the previous requirement that the complaint be made within 180 days of the employee being hired.
“Lilly Ledbetter had no way of knowing that each paycheck she received, week after week, year after year, was less than her male counterparts,” Simpson said. “This is partly due to the fact that paycheck discussions between employees were not tolerated.”
Despite the bill that bears her name, Ledbetter, a former employee of Goodyear Tire and Rubber Co., received no compensation for the discrimination against her. She could prove the discrimination only after receiving an anonymous note from a co-worker.
Representatives from several organizations testified in support of the bill, including those from the Maine Women’s Lobby, the Maine Civil Liberties Union, the WAGE Project, and the Maine State Employees Association.
William Peabody, director of the state Dept. of Labor’s Bureau of Labor Standards, also voiced support.
“This seems like a fundamental right, but some employers have policies that forbid workers from divulging their pay,” Peabody said. “Such a policy frustrates the goal of the equal pay law.”
Peabody says his office relies on complaints from employees – which average about three per year in number – to uncover discriminatory pay practices.
“An employee working for an employer with a nondisclosure policy is far less likely to file a complaint if they believe they can be fired just for discussing their pay,” he said. “The department believes that this bill provides an additional level of protection for employees that may be victims of pay discrimination.”
Jim McGregor, a lobbyist for the Maine Merchants Association, said he respected the goal of equal pay for equal work among men and women, but said this bill, “represents an unnecessary intrusion into the private workplace” during an economic climate that makes entrepreneurship difficult enough.
“(This bill) has the real potential of creating dissent and unrest in the workplace without really accomplishing anything,” he said. “Pay levels and benefits can be based on many factors, including time on the job, education, motivation, attendance and general job performance.”
Peter Daigle, director of operations for Lafayette Hotels, which oversees 21 hotels in Maine, said the language in this law is “frighteningly broad.”
“It’s a fact of life that some associates do better than others and they get paid more,” he said. “Discussing pay rates and wages will only create problems. If we paid the same rates for the same jobs at all of our hotels, some of those hotels would close.”
Daigle and others also said this law would allow an employee to ask for information on every other employee and compel those employees to cooperate.
After the meeting, Simpson said that’s not the intention of her bill.
“There seemed to be a lot of concern that people would be required to disclose their wages,” she said. “I just want people to be able to ask questions amongst themselves.”
The Labor Committee is scheduled to consider this bill during a work session on Feb. 19.
(Statehouse News Service)
