Minnesota Reducing Gender Pay Gap, Income Inequality

State lawmakers in the Minnesota House of Representatives passed the Women’s Economic Security Act on April 9, legislation that will help women earn equal pay for equal work, strengthen workplace protections for pregnant mothers and expand employment opportunities for women in high-wage, high-demand professions.

Less than 24 hours later, the House concurred with the Senate to pass an increase in Minnesota’s minimum wage to $9.50 per hour by 2016 along with a mechanism that could provide annual pay raises based on the rate of inflation starting in 2018. Governor Dayton intends to sign the bill into law on Monday.

These policies are a good recipe for economic growth because they help to increase consumer spending on goods and services from local businesses. And when businesses have more customers, they generate more profits to pay for their expenses and hire additional employees.

Census-based shows that women earn on average 80 cents for every dollar men earn doing similar work. In the legislative district I represent (20B) the gender pay gap robs women and their families of over $14,000 per year, an even larger inequity than the $10,771 statewide average.

The gender pay gap was not created overnight and it will not be eliminated by a single bill, or even in a single legislative session, but the Women’s Economic Security Act is an important step towards ensuring Minnesota women earn equal pay for equal work and are treated with the fairness and respect they deserve.

Under this legislation, larger businesses contracting with the State of Minnesota must meet pay equity requirements. Minnesota pay equity laws have been in place to protect public employees for three decades, so this change will finally reduce private sector inequities.

In addition, the Women’s Economic Security Act expands support for employers to recruit, prepare, place and retain women in high-wage, high-demand professions while boosting support for the development of women-owned businesses. It also allows private sector employees to openly discuss their compensation without fear of retaliation from employers, expands unpaid leave under the Minnesota Parental Leave Act from 6 to 12 weeks and strengthens protections for mothers who wish to breastfeed their children during unpaid break times.

Women make up the majority of workers earning the minimum wage, which means women and their families stand to benefit the most from a minimum wage boost. When the law is fully implemented in 2016, over 350,000 Minnesotans will receive a raise.

When women earn equal pay for equal work, and when low-wage workers earn more money, it stimulates our economy and benefits our state overall.

I’m proud to be a part of the steps our Legislature is taking to build on the positive economic momentum we’re seeing throughout the state. Minnesotans have good reason to be optimistic about our future.

If you have any questions or comments about the 2014 Legislative Session, please get in touch with me by phone at (651) 296-0171, by email at rep.david.bly@house.mn or by postal mail at 559 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.