Failing a cloture vote today in the Senate, the Paycheck Fairness Act (S.3772) was designed to close a purported “pay gap” between male and female workers. The Paycheck Fairness act looked to achieve this goal by facilitating litigation and levying small businesses with new paperwork—two policies which discourage hiring new workers.
“The misleadingly named Paycheck Fairness Act was a solution for a non-existent problem,” said Christopher Prandoni, Executive Director of the Alliance for Worker Freedom. “While proponents of this bill claim women make twenty percent less than men, when hours of work, overtime, education, and experience are accounted for, the difference between men and women’s wages is about five cents on the dollar.”
Many groups were opposed to S. 3772 for the detrimental effect its enforcement would have on the already frail U.S. economy. The time and cost of complying with reporting requirements would make it prohibitively expensive for some small businesses to hire more workers. The threat of litigation under the proposed law would have resulted in fewer women being hired, especially those in low-skill sectors.
“The Paycheck Fairness Act could have been the nail in the coffin for many struggling small businesses. Obamacare’s 1099 reporting provisions raised taxes on small businesses and levied endless paperwork. Coupled with the 2011 Obama tax increases if current rates are not extended, the Paycheck Fairness Act would have been devastating for businesses and the American economy.” Prandoni added.