Pay Equity Initiatives: A History

Pay equity in the United States is not a new issue. The first documented conversations about equitable pay can be traced to the 1760s when wages became formalized. During this period, documentation of wages was increasingly common, allowing for more transparency into the differences in pay between work groups. Today, pay equity initiatives continue and are still extremely relevant and necessary.

The Importance of Pay Equity Initiatives

Throughout history, there have been periods of progression and regression in the journey toward equal rights and pay. Groups affected by disparities in pay historically include the disabled, racial and ethnic minorities, and women. Pay equity initiatives are extremely important and provide the following benefits to the local communities of those affected:

• Transparency – Pay equity initiatives are useful to provide valuable insight into current salaries as well as gender gaps in various industries and markets.
• Pay disparity reasoning – Learn more about pay disparities and specific reasons for certain wage gaps with pay equity initiatives in place.
• Elimination of salary inquiries – Some pay equity initiatives also eliminate salary history inquiries from prospective hiring managers and/or employers.

Pre-1900s

Before the 1900s, there were many movements and initiatives across the world, introduced to address pay equity. While not all movements were successful, many helped to pave the way to important equal rights movements and progress toward equity.

During the Industrial Revolution of the 1760s, documented wages became more common, often required by employers. This allowed for easier wage tracking and comparisons between genders.

In 1830, the United Kingdom experienced its very first significant workforce revolt. This included unionized groups of women who insisted on fair and equal pay. By 1860, the United States began to experience its first brush with pay equity initiatives, with the “Equal Pay for Equal Work” narrative at the political forefront.

The 1920s-1950s

With the ratification of the 19th amendment of the constitution in 1920, women in the US were legally able to cast their vote, thus sparking numerous revolts and attempts to introduce new legislation.

Throughout the 1930s, the US was introduced to the idea of pay equity through The Fair Labor Standard Act. By 1938, the act was passed into law, setting a minimum wage for workers in various industries (regardless of the worker’s gender and/or age).

During World War II, throughout the early 1940s, the US vowed to pay more attention to the wage gap, although not much was done. Even throughout the 1950s, many different pay equity initiatives were created and bills were drafted and presented in front of Congress, to no avail.

The 1960s

In the 1960s, a drastic societal shift occurred surrounding how men and women co-exist in terms of earning a livable wage. In 1963, President John F. Kennedy signed the Equal Pay Act into law, providing anti-discrimination protection for all employees, regardless of gender.

The 1970s-1990s

In 1979, the original foundation of the National Committee of Pay Equity was officially formed, consisting of professional women leaders, union organizers, and well-known activist groups that were primarily representative of women. During the 1980s, many different studies were conducted regarding the wage gap as lawsuits began to climb regarding sexual harassment and workplace discrimination against women.

The 1990s

By the 1990s, the demand by women for equal pay was at an all-time high, garnering the attention of then-President Bill Clinton. In answer, President Clinton created Equal Pay Day, which was then referred to as the first National Pay Inequity Awareness Day. The day represents how many days in any given year a woman must work to earn the same amount of pay as her male counterpart in the same position.

The 2000s-Present

Throughout the 2000s and even today, there have been many different activist groups continuing the discussion of pay equity and ensuring it remains a top-of-mind issue. Although most states have accepted federal efforts to incorporate equal pay initiatives, there is still work to be done in many areas of work and business in terms of pay and transparency among workers.

“Despite the progress, pay equity initiatives are still necessary and relevant today, says Nicole Parsons Newfoundland, an HR expert with an extensive resume of advocacy supporting pay equity and workplace reform. “The disparity in pay based on any factor other than ability is a hard pill to swallow nearly three hundred years after formalized wages became a popular concept. We still have work to do.”

While most individuals who choose to pursue careers in the STEM (Science, Technology, Engineering, and Math) fields are men, it is important to ensure that all women who are seeking similar opportunities are able to achieve their goals without being limited or restricted by a wage gap. Regardless of the industry or market that a woman enters, having transparency is imperative to prevent nepotism and even subconscious wage gaps from occurring.

Pay equity initiatives are a common strategy in the continued discourse about pay equity, and the result is far reaching as discussion becomes advocacy, and that advocacy results in changes to public opinion, workplace regulations, and the law. 

Although pay equity is still a hot topic for many political pundits, corporate investors, entrepreneurs, and activists today, the topic has an extensive and rich history that dates back to the 18th century. Understanding the complex history of pay equity initiatives can help with forming a union or even diving deeper into how to bring transparency into your own place of work.