LANSING – As Michigan observes Equal Pay Day, House Democrats today passed an aggressive plan that cracks down on wage discrimination and hold employers accountable when they do not provide equal pay for equal work. The plan now heads to the Senate
"A person's gender should have no bearing on their paycheck," said State Representative Joan Bauer (D-Lansing), a lead sponsor of the plan. "By passing this plan, we are making equal compensation for equal work a priority in Michigan, and that will help our working families and move our economy forward."
Michigan ranks 47th in the nation for the wage parity between men and women. Working women in Michigan are paid 69 cents for every dollar men make – a 31-percent pay gap. This puts Michigan far behind the national gender pay gap of 77 cents per dollar.
The plan establishes new penalties for wage discrimination and creates new legal avenues to pursue those who discriminate and deprive employees of their right to wage fairness. Specifically, the plan will:
Make failing to provide equal compensation for work of comparable value a violation of the state's Elliott-Larsen Civil Rights Act.
Make gender-based pay discrimination a misdemeanor. Employers could face fines up to $500 or up to 90 days in jail for not complying.
The plan was passed by the House on Equal Pay Day, which is held across the country annually in April to represent how a woman must work 16 months to earn what a man made in the previous year.
A third piece of the plan, which will create a committee charged with developing guidelines for pay equity and reporting its findings to the Legislature, Governor and the public, was passed by the House in February.
"When companies shortchange women, their families also pay the price," said State Representative Pam Byrnes (D-Lyndon Township), a lead sponsor of the plan. "There is less money to put toward mortgage payments, less money to buy food to put on the table and less money to pay for a child's college education. I call on my colleagues in the Senate to stand up for Michigan workers and pass our plan to provide equal pay for equal work."