US Senator Kamala Harris announces 'most aggressive equal pay proposal in history'

Women working full-time in America are paid just 80 cents on average, for every dollar a man earns. For women of colour, the numbers are worse - Black women earn 61 cents, Native American women 58 cents, and Latina women make 53 cents.

Another factor contributing to the wage gap is the ‘motherhood penalty’ where women entering motherhood start earning less, while men becoming fathers are paid more. A 2014 study found that while new mothers face a four percent pay cut, new fathers earn over six percent more.

Senator Kamala Harris is on the path to set things right and make sure women at the workplace are paid the same as men - without any bias. She also says it's time to stop corporations from covering up their wage gaps and forcing women to go through expensive lawsuits to get paid equally.  

Through the campaign, which was formally announced on May 20, Kamala Harris says,

"I have a simple message for corporations - pay women fairly or pay the price."

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The plan

Following a similar law that was recently introduced in Iceland, the senator's plan includes an Equal Pay Certification that companies will be required to obtain to prove they are paying men and women equally for work with the same value. Companies that wish to justify the pay gap must do so by showing that the disparity is based on merit, seniority or performance, and not on gender.

Additionally, companies will be prohibited from asking new or prospective employees about previous salary history, banned from implementing forced arbitration with regard to pay policies, and required to allow employees to discuss their pay freely.

Under the plan, companies will also have to report statistics on the percentage of women in leadership positions and among the company's top earners. Kamala Harris says this is to ensure that corporations stop excluding women from earning promotions or being hired to senior roles, on the basis of them needing time off to take care of a new child or ailing family.

Companies that fail to comply with these rules will be fined one percent of their profits for every one percent wage gap that persists for work of equal value. It is estimated that the plan will generate around $180 billion over ten years, with revenue consequently decreasing over time, as equal pay practices are ingrained into the American corporate culture.

The gender pay equality proposal is joined by the senator’s LIFT (Livable Incomes for Families Today) the Middle Class Act, which aims to cut taxes and provide working middle class households with a fixed regular income, as well as a federal investment plan to close the wage gap between teachers and other college-educated professionals.

Also read: Closing the gender gap: Iceland shows the way