LANSING – State Representative Roy Schmidt (D-Grand Rapids) today threw his support behind legislation to create new legal avenues and provide tougher penalties for employers that engage in this practice. Lawmakers joined advocates of pay equity at the Capitol today to recognize Equal Pay Day.
"We have some of the most talented and hard-working employees in the country here in Michigan, and we need to make sure they receive the pay they deserve," Schmidt said. "We need to be determining our workers' pay based on experience and work ethic – not on gender. This plan will hold companies accountable and prevent the discrimination against the workers who drive our economy."
According to the American Association of University Women (AAUW), Michigan is ranked 44th in the nation for wage parity between men and women. Women working in Michigan are paid 71 cents for every $1 men make – a 29 percent pay gap. This puts Michigan far behind the national gender pay gap of 78 cents per dollar.
Last year, the Senate blocked a similar House plan that would have established new penalties for wage discrimination and created new legal avenues to pursue those who discriminate and deprive employees of their right to wage fairness. Under the plan introduced today, failing to provide equal compensation for work of comparable value will be a violation of the state's Elliot-Larsen Civil Rights Act. The plan also will make gender-based pay discrimination a misdemeanor, and employers would face fines up to $2,000 or up to 90 days in jail for not complying. Employers guilty of a third violation would face fines up to $15,000. House members intend to begin committee hearings on the legislation in the next couple of weeks.
"This pay gap is not only costing our workers, but it's also costing our families," Schmidt said. "The average American woman working full-time could lose hundreds of thousands of dollars over her lifetime – which is exactly what our middle class families don't need at a time when they're struggling to make ends meet. When workers are shortchanged, there is less money to pay mortgages and put food on the table. We must take action now to end the unfair practice of wage discrimination."