Strengthening Workers’ Rights to Discuss Pay Strengthens Families Budgets and Maryland’s Economy

The General Assembly has the opportunity to correct gender-based wage discrimination this session. The Equal Pay for Equal Work Act (Senate Bill 424/ House Bill 1051) would give employees the tools to correct pay discrepancies without fear of retaliation by their employers, a significant step toward equality.

Without any intervention by policymakers or employers, it would take Maryland until 2042 to reach wage equality between men and women for similar jobs. While waiting for that to occur, a woman working full-time who was born between 1955 and 1959 will lose at least $532,000 by age 59 because of pay discrimination. The same woman will lose almost $800,000 if she is college educated. Women will see wage discrimination reflected in their paychecks, their savings accounts, and their retirement.

The Equal Pay for Equal Work Act would prohibit an employer from firing, demoting or otherwise punishing an employee for the disclosure or discussion of an employee’s wages. Employees would be free to discuss their pay, discover unequal pay, and bring a complaint to the Equal Employment Opportunity Commission without fear of retaliation.

Women in Maryland face less gender-based wage and employment discrimination than in other states, according to a new report by the Institute for Women’s Policy Research. Maryland ranks #2 for women’s earnings out of the 50 states, with D.C earning the top spot.

Although the wage gap may be smaller between men and women in Maryland, it  still does long-lasting damage to families and Maryland’s economy, especially for women-headed households.

Almost half of families with children are supported by a working woman. However, their smaller wages are not enough to make ends meet. In Maryland, where the median income is very high, one in ten women live in poverty, even though 60 percent of women over the age of 16 work. Women are over-represented in low-wage jobs, jobs that prevent them from being able to support their families and contribute to Maryland’s economy. Seventy percent of all low-wage workers are women and the majority of those earning the minimum wage or the lower minimum wage for those who earn tips are women. Those who make the tipped wage are also more likely to be harassed by their patrons and employers making the issue of wage discrimination a safety issue.

Women of color are hit harder by wage discrimination. Black or African-American and Hispanic or Latino women earn less than White women. For every dollar made by a white male, a Black or African-American woman earns just 64 cents and a Hispanic or Latino woman earns 56 cents.

We need to end the practice of paying employees different wages based on sex and race. The intersection of both has a particularly devastating effect on women of color and their families.

Maryland can dismantle harmful wage discrimination by passing the Equal Pay for Equal Work Act. Currently, many workplace policies prohibit an employee from discussing pay. Strengthening the state law would give employees the power necessary to advocate for themselves and earn the pay they deserve based on their skills and education, not gender or race. This is an important step forward in rectifying the wage discrimination that has been practiced since women entered the workforce.