Day: April 8, 2014

What You Need to Know about the Paycheck Fairness Act (PFA)

I got an email today from SHRM to tell me more about the Paycheck Fairness Act. It could go to a vote as soon as tomorrow, April 9, you want to get versed on it pretty quickly.

SHRM’s take on the PFA is that the PFA would significantly limit the flexibility of HR professionals to compensate their employees.

After doing a bit of research, I’m inclined to agree. We have the Equal Pay Act of 1963 — why do we need the PFA? I’m not sure that I totally buy that it will help equalize pay between men and women. I actually still have some questions on the “wage gap.”

Here are a few more points from SHRM (quickly and nicely packaged) in why the PFA is not a good idea:

*  Restrict employee compensation – The PFA would effectively prohibit an organization from basing its pay decisions or compensation system on many legitimate factors, such as an employee’s professional experience, education, or the company’s profitability. In practice, this would take away many factors HR professionals use to compensate their employees and could particularly discourage employers from providing bonus pay. Also, employees would be barred from negotiating for higher wages because of the wage disparity that could result.

*  Allow government wage data collection – The PFA would empower the U.S. Equal Employment Opportunity Commission and the Department of Labor to collect wage information from employers of all sizes, a time-consuming and unnecessary exercise that would only facilitate litigation.

I personally am not all about the second bullet — one, it feels too “big brotherish” and two, its one more administrative thing for HR pros to have to spend time on managing.  The bill is suppose to help impact the wage gaps between men and women… but I don’t think that this is the way to go about it.

Here are a few other reads that I think you should check out — but you know me, I’m always going to tell you to do some research, get the information, and arm yourself with knowledge — make your own opinion. Put down Facebook, Pinterest, and Instagram and get after it.

Now this isl egislation — as always, don’t think about this from a “party line” issue — look at it objectively — look at the issue and THEN make up your own mind. Let’s discuss — but keep to the issues of HR and pay — and not the politics. Although so many of the articles are pinning things one party against the other — try to ignore that and stay neutral.

These will help you get started:

So what do you think?

          OR      

Get your research on!

Yours,

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