Some state legislators think they can address the gender wage gap by barring employers from punishing workers who freely discuss salary and wage information.
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Some state legislators think they can address the gender wage gap by barring employers from punishing workers who freely discuss salary and wage information.
Unfortunately, their presumptions amount to nothing more than wishful thinking. Allowing workers to freely share salary information won't dramatically impact employee wages or lead to sudden pay hikes for female workers.
Ultimately, it's the employer's job and right to place a value on each employee and pay them accordingly as long as they don't discriminate based on gender, age, race or sexual orientation. Just because workers share the same title or log the same number of years of service doesn't mean they should receive the same pay. There are many factors that determine employee pay, including growth potential, commitment to the job, and, of course, overall performance.
Giving workers free rein to compare wages won't dramatically change that dynamic or provide the necessary context for why one employee is paid more than another.
That being said, we aren't opposed to free speech in the workplace. Workers should not be punished for disclosing their wages to other employees, which is a safeguard included in House Bill 6850.
Labor unions and other top Democrats, including Gov. Dannel P. Malloy, have thrown their support behind the measure, which passed the House last week and is awaiting Senate approval. Even some House Republicans backed the bill. The Connecticut Business & Industry Association voiced opposition to the proposal, arguing it could lead to morale issues in the workplace.
CBIA has a valid argument. You can imagine the ruffled feathers that could result from free and open discussions about employee pay, but restricting workers the right to tell others how much they make is is anti-democratic; it's the equivalent of outlawing water-cooler talk in the office.
The argument, however, that pay disclosures will lead to pay equity is hard to fathom (according to a recent report by the Institute for Women's Policy Research, women in Connecticut earn 76.7 cents for every dollar a man makes). Such a conclusion was made in a 2013 report published by the state's Gender Wage Gap Taskforce, which said "prohibiting discussion among employees about salary information is a contributing factor in perpetuating the gender wage gap."
The report went on to say that allowing employees to discuss wage information would help women more accurately gauge their earning potential, particularly since many employers are often unaware that the gender gap exists. That conclusion, however, is overly simplistic.
It's nearly impossible to accurately conclude that pay discrimination is occurring simply because a female and male employee with similar pedigrees are paid differently; it fails to recognize the myriad factors that determine a salary.
So, while we aren't opposed to a ban on pay secrecy rules, we don't buy into the notion that it will have a major effect in shrinking the gender wage gap.
