PAY EQUITY COALITION OF MINNESOTA
Get involved now! Click here to view our Statement of Principles
and to join with us!
Mission: To eliminate the wage gap between women and men employed full time
in Minnesota's paid labor force. We do this by educating the public about
unfair gender based pay inequities and advocating for social change.
About the Pay Equity Coalition
The Pay Equity Coalition of Minnesota is an unincorporated network of organizations and individuals. The group came together initially to support the State Government Pay Equity Act of 1982 (M.S. 43A) and Local Government Pay Equity Act of 1984 (M.S. 471.991 – 471.999). Both of these laws are unique in the nation, and both continue to be monitored and enforced. The result is most visible in state government employment, where average earnings for female employees has increased from 72% of earnings for male employees in 1982 to 97% of earnings for male employees in 2006.
Contact Us
To join the Pay Equity Coalition and receive email notices of current activity, write President Patty Tanji, ptanji@aol.com. Our mailing address for donations and other business is c/o Minnesota Women’s Consortium, 550 Rice Street, St. Paul 55103.
National Pay Equity Activity
The Paycheck Fairness Act has recently (spring 2007) been re-introduced in Congress. For more information about this and other national and international pay equity initiatives, go to www.pay-equity.org
Resources
The Office on the Economic Status of Women in the Minnesota Legislature has a report on pay equity on its website, www.oesw.leg.mn.
The Pay Equity Coalition is a member organization of the Minnesota Women’s Consortium. Many other member groups, including the Association of University Women, Business and Professional Women, League of Women Voters, and others have been long-time supporters of pay equity. Visit the Consortium website, www.mnwomen.org, for contact information for these and other groups committed to economic equality for women.
The Minnesota Department of Employee Relations Pay Equity Unit offers technical assistance, instructions for job evaluation, pay analysis, completing pay equity reports, a free Job Match evaluation system, and free computer software for pay analysis.www.doer.state.mn.us/lr-peqty/lr-peqty.htm or Pay Equity Coordinator Faith Zwemke, Faith.Zwemke@state.mn.us, or 651/259-3761.
Earn More, Move Up: A New Look at the Gender Pay Differential (edited by Jennifer Keil, Ph.D.) was published in March 2007 by the Center for Economic Progress. Cost of the book is $15. To order, visit the CEP website, www.economicprogress.net.
During the 2007 Minnesota State Legislative session the Pay Equity Coalition of Minnesota mobilized to the pass the "Pay Equity for State Contractors Bill". Below you will find Facts and Frequently Asked Questions regarding this bill.
Equal Pay Day is an annual event hosted in many communities around Minnesota and the United States, noting that it takes women about 15 months to earn as much money as men earn in 12 months – so creative events such as "unhappy hours" occur in mid-April. Tuesday, April 22, 2008, has been designated National Equal Pay Day. As we get closer to the date, please stay tuned for a list of Equal Pay Day activities in Minnesota, by visiting the website of one of the major sponsors, Business and Professional Women of Minnesota, www.bpwmn.org.
THE FACTS...
• Women still earn less than men. Both in Minnesota and
the U.S., women still earn on average only about three-fourths
of average earnings for men. This is true despite passage of
the federal Equal Pay Act in 1972.• Minnesota has 2 successful pay equity laws on the books.
Minnesota passed unique pay equity laws in 1982 (for state
government employees) and 1984 (for local government
employees). These laws have worked very well and are
still being enforced today. Results:• About 20,000 women work in state government. Their overall
average pay is up to 97% of average pay for men in state
government – up from 72% when thelaw was passed.
• More than 100,000 women work in local governments
(1,500 cities, counties, and school districts). Many have
received pay equity increases correctingPay Equity for State Contractors
SF1061, HF1441Frequently Asked Questions
Our pay is based on market rates. Does this law change that?
This law would not set pay rates. Most companies will probably continue to use market rates as a starting point in setting pay for jobs done mostly by men. However, “the market” has often under-valued work done by women. This law would require companies to take a snapshot to make sure there is not an overall pattern of lower pay for jobs done primarily by women within that company – when the “women’s jobs” are at a similar level of responsibility to jobs performed mostly by men.We don’t discriminate in hiring or pay. Does this law apply to our company?
If all jobs in a company are balanced by gender – for example, if about half of all the bank tellers, medical records clerks, division directors, construction foremen, loan officers, carpenters, building managers, sales reps, vice presidents, etc. are women and half are men – there will not be any overall pattern of pay inequity. Since most companies still have some jobs that are “primarily female” or “primarily male,” those workplaces need
to analyze pay for the “female” and “male” jobs.What if we don’t have the time and money to do a pay equity study?
The study can be completed by existing human resources staff, using free resources and low-cost training from the state. This is a voluntary program.
It applies only to companies seeking state contracts
of $100,000 or more, with 40 or more employees in Minnesota. These companies are already required to prepare affirmative action plans.What if I want to pay an employee more for excellent work, or for years on the job?
That’s fine. The law does not set pay rates, and does not apply to individual employees. The law only prohibits an overall pattern of consistently lower pay for “female jobs” of comparable skill, effort and
responsibility to other jobs within the company.
Some jobs may be paid more than others because of merit, experience or the difficulty of attracting
workers – but that standard must apply equally to “male” and “female” jobs.
What benefit, as a business owner, results from this law?
Besides qualifying for state contracts, rewarding the people who work for you with fair and equitable wages equates to less turnover and higher
productivity. Having a pay equity plan in place can help protect companies from lawsuits.Are we creating more government infrastructure to implement this bill?
No. This bill fits with the process already in place at the Department of Human Rights, which certifies affirmation action plans for state contractors. It would create one new position to review pay equity plans, paid for by a small contractors’ application fee. The new law also fits with the pay equity oversight which has been in place for two decades in the Department of Employee Relations, with one staff position overseeing compliance for 200,000 employees in 1,500 public sector workplaces.
Don’t state contractors already evaluate jobs?
Yes, companies already evaluate jobs. However, the market historically undervalues jobs performed predominantly by women, and when evaluations are
translated to pay-setting, gender bias is common. Examples of female dominated jobs that have equal job points but have historically not been paid the male equivalent are: Clerk Typists and Custodians; Secretaries and Lab Technicians; Child Care Workers and Maintenance Workers; Emergency Services Operators and Fire Dispatchers; Dining Hall Coordinators and Automotive Parts Technicians; Social Workers and Parole Officers.Aren’t businesses doing enough to support our communities by providing jobs?
Isn’t their profit margin tight enough that they have to control labor costs. Aren’t pay scales going to be completely different for management, blue-collar, and pink-collar jobs? This law would not set pay rates for any job. Companies will still accommodate union contracts, community pay practices, recruitment issues,etc. The only thing the law would NOT allow is an overall pattern of consistently lower pay – throughout the company - for “female-dominated”
jobs of comparable value to “male-dominated” jobs.What if my company does a study and finds pay inequities but can’t correct them overnight?
In state and local governments, the average cost to correct inequities was 1% to 3% of annual payroll. Pay inequities were corrected over a period of 1-3 years, phased in without layoffs or reducing pay for any
“male-dominated” jobs. The pay equity for state contractors bill does not require that all inequities be corrected before the company is certified – only that a plan is in place and a good faith effort is underway.Aren’t women paid less because they have been out of the workforce raising families, because they choose lower-paid work, and because they work
part-time?
Sometimes. The pay equity law for contractors will not set pay rates for any job, and allows for pay differences based on experience and hours of
work. The law will not apply to employees working less than 14 hours per week. The only thing the law would NOT allow is an overall pattern of
consistently lower pay – throughout the company -- for “female-dominated” jobs of comparable value to “male-dominated” jobs.How does this fit with minimum wage, living wage, affirmative action, etc?
Minimum wage and living wage requirements, where applicable, refer to pay levels within a company. Affirmative action requirements refer to hiring
practices. Pay equity laws don’t apply to hiring, and don’t set a “floor” or require any particular pay rate. They require a snapshot of the overall
pattern of pay rates within the company, and prohibit an overall pattern of consistently lower pay for female-dominated jobs.for patterns of lower pay for “women’s work.” The cost has consistently been 1% to 3% of total payroll.• But 89% of Minnesota women work in the private and
non-profit sectors, so the state pay equity laws have not
helped them.• The State of Minnesota contracts with over 1,800 private
and non-profit firms for billions of dollars each year. To be
eligible for state contracts, these companies are already
required to submit affirmative action plans to the state
Department of Human Rights (DHR). DHR reviews these
plans and certifies approved companies to the Department
of Administration.
• The “Pay Equity for Contractors” bill requires companies
wishing to contract with the state to submit pay equity plans
to the Department of Human Rights, in addition to the
affirmative action plans already required, to be eligible as
contractors.• The law would apply to contracts for more than $100,000
and companies with more than 40 employees in Minnesota.
• Private employers can use free job evaluation tools and job
analysis software from the Department of Employee relations.
• The bill uses the same standard for pay equity already
incorporated in the public employers’ law and rules.
• Human Rights can certify employers making a good faith effort.
• Data submitted by non-public potential contractors will be
private.
• The bill increases the certification fee by $75 per contractor,
to provide resources for administering the plan reviews.• This bill puts employers in the driver seat in terms of
identifying and addressing pay inequities. It goes beyond the
“one woman at a time” approach to addressing pay inequities
as is the case today in the private sector.For more information:
--- Patty Tanji, President, Pay Equity Coalition,
ptanji@aol.com or 651/271-1462.
--- Rachel Callanan, Grasstops, 612/803-1008 or
rachelcallanan@yahoo.com
--- Aviva Breen, PE Coalition member,
avivabreen@aol.com or 612/331-6524
--- Bonnie Watkins, PE Coalition member,
bonniepwatkins@cs.com or651/731-4548