Equal Pay Day 2022

Equal Pay Day is the date in the year that symbolizes how far into the year women must work to earn what men earned in the previous year. Equal Pay Day was originated by the National Committee on Pay Equity in 1996 as a public awareness event to illustrate the gap between men's and women's wages. 

This year, Equal Pay Day in the United States fell on March 15, 2022, which is the earliest we have ever marked the occasion. This is great news of progress as the earlier that Equal Pay Day arrives, the closer the United States has come to achieving pay fairness. But while we should celebrate the progress we have made, there is still more work to do.

According to recent U.S. Bureau of Labor Statistics data, the median earnings for women in 2021 were 83% of the median for men.

PayScale’s annual gender pay gap report echoed similar results with women, according to their data, earning 82 cents on the dollar for every dollar a man earned based on the uncontrolled pay gap. This is the “opportunity gap” and measures the median salary for all men and women. The uncontrolled pay gap is an indicator of how gendered wealth and power is distributed within society. These gaps widen even further when broken down by women of color, with the lowest being American Indian and Alaska Native women with an opportunity gap of 71 cents on the dollar. Over the course of a career, this pay gap can add up to hundreds of thousands of dollars in lost earnings. In fact, the PayScale study finds that women are paid less than men in every industry and occupation. 

Some other notable research from the most recent study is that women are paid less than men as they climb the corporate ladder, with the gap at the executive level for women at 73 cents on the dollar compared to men.  Women tend to start their careers earning less than men and max out much sooner in their careers. 

Some good news is that pay equity intent is on the rise. More organizations than ever are prioritizing pay equity planning in the coming year with planned initiatives increasing 20% year over year. As much as we are seeing higher levels of intent toward pay equity in 2022, it is clear some are still reluctant to start their journey. Not recognizing the importance that pay equity and fair pay perception has on your future, both from a compliance and employee morale aspect, puts you at risk. Adding to this complexity, with the current tight labor market make sure that you are not making rash decisions that may impact pay equity within your organization. 

If you need consulting help with any of your pay equity questions, reach out to our Compensation Team today.