Biden White House has majority-female staff, narrowed gender pay gap to 1%

Joe Biden
President Joe Biden.

  • President Biden has a majority-female senior staff, according to recently-released figures.
  • Roughly 60 percent of Biden appointees at the White House are women.
  • The president has long been a champion of pay equity, calling it “a moral imperative.”
  • Sign up for the 10 Things in Politics daily newsletter.

President Joe Biden has significantly closed the White House gender pay gap and hired a majority of women within its senior staff ranks, according to the White House.

The Biden administration released the analysis on Thursday, in an annual report required by Congress detailing the name and salary of every White House employee.

In a fact sheet, the White House indicated that women make up roughly 60 percent of appointees and 56 percent of senior staff, with individuals from racially or ethnically diverse backgrounds making up 44 percent of appointees and 36 percent of senior staff.

The gender pay gap has been reduced to 1 percent, with men making $94,639 on average and women earning an average salary of $93,752.

High-profile staffers including White House chief of staff Ron Klain, National Economic Council Director Brian Deese, White House press secretary Jen Psaki, domestic policy advisor Susan Rice, and senior advisor Cedric Richmond all make $180,000 per year.

One of the highest-paid appointees is Molly Groom, the policy advisor for immigration, who earns $185,656.

Read more: Meet 7 BidenWorld longtime consiglieres and a couple relative newcomers who have access to exclusive White House meetings

Biden has long championed pay equity, calling it “a moral imperative.”

“In alignment with the president’s commitment to diversity and pay equity, the White House has taken significant steps to ensure the White House staff reflects the diversity of the country and the highest standards of economic and social justice for all,” the White House said in the fact sheet.

Women make up 50.8 percent of the US population, according to 2019 Census figures, and they comprise of 47 percent of the labor force, according to the US Bureau of Labor Statistics.

Last year, Biden tapped then-Sen. Kamala Harris of California to be his running mate in the 2020 presidential election, calling himself a “bridge” candidate to a new generation of Democratic Party leaders.

Biden has also committed to nominating the first Black female judge to the US Supreme Court if a vacancy arises during his presidency.

Read the original article on Business Insider

Closing the global gender gap will take an extra 36 years due to the impact of the pandemic, the World Economic Forum said

Hundreds of women gather in Russell Square for the Women's Strike Assembly on International Women's Day on 8th March 2018 in London, England, United Kingdom.
Hundreds of women gather in Russell Square for the Women’s Strike Assembly on International Women’s Day on 8th March 2018 in London, England, United Kingdom.

  • Closing the gender pay gap will take an extra 36 years, the World Economic Forum said Tuesday.
  • The prediction has climbed from 100 years to 136 years because of the impact of the pandemic.
  • 5% of all employed women lost their jobs during the pandemic, compared with 3.9% of employed men.
  • See more stories on Insider’s business page.

Achieving global gender parity will take an extra 36 years because of the coronavirus pandemic, a World Economic Forum (WEF) report said.

Previously, the WEF estimated that the gender pay gap could take around 100 years to close. It’s now increased its prediction to nearly 136 years.

“Preliminary evidence suggests that the health emergency and the related economic downturn have impacted women more severely than men, partially re-opening gaps that had already been closed,” the report said.

The WEF calculated worldwide gender parity through economic participation and opportunity, political empowerment, health and education across 156 countries.

It will take around 146 years to attain gender equality in politics, and 268 years for men and women to get the same salary for similar work, the report said. It added that the data doesn’t yet fully reflect the impact of the pandemic, which could extend the gaps further.

Gender parity has improved in the education sector, taking another 14 years to completely close, and the gap in health between men and women will take a similar amount of time.

The WEF report cited the International Labour Organization (ILO) that said 5% of all employed women lost their jobs during the pandemic, compared with 3.9% of employed men. There was also a decline in hiring women into senior positions, according to LinkedIn data.

“There is a persistent lack of women in leadership positions, with women representing only 27% of all manager positions,” the report said.

Sectors such as cloud computing, engineering, data and AI are more likely to have gender gaps as the uptake of women for these kinds of jobs is fairly low, the WEF added.

Read more: Here’s how to find out if you’re underpaid at work, and the exact script to use when asking your boss for a salary increase

WEF managing director Saadia Zahidi wrote in the report: “The hardest-hit sectors by lockdowns and rapid digitalization are those where women are more frequently employed.”

“Combined with the additional pressures of providing care in the home, the crisis has halted progress toward gender parity in several economies and industries,” she said.

Zahidi added that she hoped the report would be a “call to action” for countries to focus on gender equality in the post-pandemic recovery.

According to data from the Bureau of Labor Statistics, average weekly earnings for men who were older than 16 and working full-time was $408 compared to $251 for women – that’s 61.5% of a man’s weekly earnings. This has increased to 81.7% in the third quarter of 2020.

Insider reported in March that the gender wage gap in the US varies widely by state, city and race, with Black and Hispanic women facing the largest pay gap in comparison to non-Hispanic white men’s earnings.

Read the original article on Business Insider

These 8 charts show the glaring gap between men’s and women’s salaries in the US

town hall on gender and pay equity in Minneapolis
US Rep. Ilhan Omar poses for a photo with fellow panelists at a town hall meeting on gender pay gap and equity on April 24, 2019, in Minneapolis, Minnesota.

  • March 24 is Equal Pay Day, which reflects how many extra days women had to work to make as much as men did in 2020.
  • The gender wage gap persists, and women make 82 cents for every dollar a man makes.
  • These charts show the gap in pay varies widely based on location, race, and several other factors.
  • See more stories on Insider’s business page.
Men have earned more than women since 1979, the first year with available data.

Equal Pay Day reflects how many extra days women have to work to earn what men did in the previous year. This year’s Equal Pay Day falls on March 24. The Census Bureau wrote in a recent post that this is “earlier than it’s ever been since its inception in 1996,” suggesting a modest shrinking of the gender pay gap. 

Over half a century after the US passed the Equal Pay Act, American women still face a substantial gender wage gap across the spectrum. The Institute for Women’s Policy Research estimates that equal pay will not be reached until 2059.

Based on weekly earnings data from the Bureau of Labor Statistics, the gap has narrowed over time.

In the first quarter of 1979, median weekly earnings for men age 16 and over working full time was $408, compared to $251 for women. That is, women’s weekly earnings were 61.5% of men’s weekly earnings. There has been some progress over the years, and in the third quarter of 2020 women’s weekly earnings were 81.7% of men’s weekly earnings.

Overall, women who were full-time, year-round employees made 82.3 cents for every dollar men made in 2019, based on median earning data from the Census Current Population Survey. That means women are paid 17.7% less than men, earning $10,157 less than men.

The gender wage gap varies widely by state.

According to American Community Survey data from the US Census Bureau, the gender pay gap in the United States in 2019 was around 19%. This means that a woman who is at least 16 years old, working a full-time, year-round job, and who is part of the civilian employed population makes 81% as much as her male counterpart earns.

The pay gap varies, however, by state.

In Wyoming, for instance, the gender pay gap is 36.6%, the biggest wage gap in the nation based on those who are part of the “full-time, year-round civilian employed population 16 years and over with earnings” population. That is, median earnings of women who in this state make 63.4% of what men earn. In 33 states, the gender pay gap is larger than the national average.

Most states have implemented laws against gender discrimination, and the 1964 Civil Rights Act protects women at the federal level, yet disparities persist.

Vermont had the smallest pay gap in 2019 at 9%, with full-time, year-round women who are at least 16 and part of the civilian employed population making a median salary of $46,641, while men made $51,241.

Major cities show an even bigger discrepancy.

Around the US, salaries in large cities show an even greater range of pay discrepancy between men and women.

The American Association of University Women, a nonprofit that advocates for gender equality, examined how much women earn compared to men in 25 major metro areas using 2019 US Census data from the American Community Survey.

Out of the 25 cities, the narrowest gender wage gap overall is in Los Angeles, where women make approximately 90.6% of the median earnings for men, a pay gap of 9.4%. Detroit had the widest wage gap: Women’s median earnings of $44,486 in this city is 73.8% of men’s earnings of $60,278. That translates to a pay gap of 26.2%.

Overall, Black and Hispanic women face the biggest pay gap when comparing earnings to non-Hispanic white men.

Black and Hispanic women are most affected by the wage gap, especially when compared to non-Hispanic white men, who make up the largest demographic segment of the workforce.

We looked at the wage gap for different racial and ethnic groups using median earnings data for full-time, year-round workers from the US Census Bureau’s 2019 1-year American Community Survey.

Asian women face the smallest wage gap — they earn 91.4% of what non-Hispanic white men earned, resulting in a pay gap of just 8.5%. Non-Hispanic white women earn 78.1% of what non-Hispanic white men do, while Black women earn 61.1%. Hispanic women earn 53%, or a pay gap of 47%.

When compared to Black men, Black women earn 90.7% of what men earn, and Hispanic women make 80.6% of what Hispanic men do.

The larger disparity between non-Hispanic white men’s and women of color’s earnings could be attributed to the fact that “women of color suffer both because of their gender and their race,” according to an April 2016 report released by the Senate Joint Economic Committee’s Democratic Staff.

Another way of looking at that gap for women of different racial and ethnic groups is to consider when “equal pay day” for each group falls.

Number of days women have to work into the next year to earn as much as white men calendar graphic

Equal Pay Days further vary by race and ethnicity, in line with the pay discrepancies between non-Hispanic white men and women of different races and ethnicities.  

The above calendar graphic shows how many days into the next year a woman has to work in order to earn what a non-Hispanic white man would have earned in the previous year, using estimates from the American Association of University Women.

For example, a typical full-time, year-round employed Black female worker starting on January 1, 2020, would have finally earned on August 3, 2021, what a similarly employed non-Hispanic white male worker would have made over the course of 2020 alone. That means Black women have to work around seven extra months to earn the same as non-Hispanic men earned in a single year in 2020.

It takes full-time, year-round employed Asian American or Pacific Islander (AAPI) women the shortest time to make what non-Hispanic white men would have made the year before. It would take a female Asian American or Pacific Islander worker over two extra months in 2021, or until March 9, to earn what a non-Hispanic white man earned the year before.

However, pay gaps for Asian women vary further. Although AAPI women make 85 cents for every dollar non-Hispanic white men make, an analysis from the Center for American Progress finds Burmese woman makes just 52 cents for every dollar the median non-Hispanic white man makes, for instance.

Read more about equal pay day by race here.

Women with children gain no salary boost, while men with children are rewarded.

In 2015, women with children were earning roughly the same as women without children, $727 and $726 respectively. However, working fathers with children earned about $141 more than a men without children. 

That gap has slowly been closing since then, as 2019 data from the Bureau of Labor Statistics show that women with children now make slightly more than women without kids under 18 at home.

Men with children see an earnings boost, and the difference between their weekly take-home pay was typically $189 higher than their counterparts without kids in 2019.

For working women, the difference in earnings between women with and without children is minimal. Working mothers only made $30 compared to other working women in 2019.

While this disparity can be attributed to differences in careers and work hours between men and women who have children and those who do not, a 2016 report released by the Senate Joint Economic Committee Democratic Staff says that there is also a difference in how working mothers and fathers are perceived by management.

According to the report, some employers may view motherhood as a “signal of lower levels of commitment and professional competence.” Working fathers, on the other hand, may be viewed as having “increased work commitment and stability.”

Women’s earnings are lower than men’s over the course of a lifetime.

The gender pay gap exists for workers across a lifetime.

Using Census data from the Minnesota Population Center’s IPUMS program, we found that the median full-time, year-round male worker earns more than his female counterpart at every year of age.

The gap is narrower for younger workers, with the median 25-year-old woman earning about 91.1% of the median 25-year-old man. Meanwhile, the median 50-year-old woman earns just 76.9% of her 50-year-old male counterpart.

Women over the age of 75 are almost twice as likely to live in poverty, according to the Senate report. Many women that age didn’t work when they were younger, so they have fewer sources of retirement income than men their age.

In 1950, about 34% of American women were in the labor force, compared to about 86% of men, according to the Bureau of Labor Statistics. By 1980, the numbers were 52% and 77% respectively — and the numbers have largely plateaued since then.

Before the pandemic, the labor force participation rate for women was around 58% in February 2020 and around 56% in February 2021. The labor force participation rate for men was about 69% in February 2020 and about 67% in February 2021.

The number of women promoted to the highest levels within companies reveals unconscious biases.

Very few women are CEOs of major corporations, or in the C-level suite of executives running corporate America.

Data from a study put together by McKinsey & Co. and Lean In show how men are promoted up, while women fall by the wayside. Based on the latest report, only one in five C-level executives were women. Women of color are furthermore underrepresented at the executive level, making up less than 1 in 30 in the C-suite.

A recent IBM report also finds little change between leadership representation in 2019 and 2021. Based on the survey covering 10 industries from nine different regions, women made up just 10% of C-suite and 8% of executive board positions in 2019 and 2021.

The latest McKinsey report suggested that more women are working in senior positions, but it is still hard for women to move up from entry-level jobs into higher roles. “For every 100 men promoted to manager, only 85 women were promoted,” the report said, which affects the number of women being promoted to higher positions in the corporate pipeline.

However, women consistently ask for promotions and raises more. One of the reasons for the disparity between women asking for promotions and actually getting them was because when women negotiate, people like them less for it, according to a previous McKinsey study, covered by Insider, found.

Harvard Business Review found in its research that women ask for raises just as much as men, but men are more “successful” with their requests, with a success rate of 15% for women and 20% for men.

Read the original article on Business Insider

7 charts that show the glaring gap between men’s and women’s salaries in the US

town hall on gender and pay equity in Minneapolis
US Rep. Ilhan Omar poses for a photo with fellow panelists at a town hall meeting on gender pay gap and equity on April 24, 2019, in Minneapolis, Minnesota.

  • Not only is March Women’s History Month, but March 24 is Equal Pay Day for women.
  • Even though a lot of progress has been made, the gender wage gap persists.
  • That gap in pay varies widely based on location, race, and several other factors.
  • See more stories on Insider’s business page.

March is not only Women’s History Month, where all the hard work and achievements of women are recognized, but March 24 marks this year’s Women’s Equal Pay Day.

The date refers to how many days into 2021 women had to work to make as much as men did in just 2020. Equal Pay Days further vary by race and ethnicity, in line with the pay discrepancies between non-Hispanic white men and women of different races and ethnicities.

And while women have gained important political power and some gains in the corporate pipeline, there is still work to be done to reach equality, especially when it comes to financial power.

Over half a century after the US passed the Equal Pay Act, American women still face a substantial gender wage gap across the spectrum. The Institute for Women’s Policy Research estimates that equal pay will not be reached until 2059.

Overall, women who were full-time, year-round employees made 82.3 cents for every dollar men made in 2019, based on median earning data from the Census Current Population Survey. That means women are paid 17.7% less than men, earning $10,157 less than men.

The seven charts below illustrate the significant pay discrepancies between men and women based on race, age, geographical location, and more.

The gender wage gap varies widely by state.

According to American Community Survey data from the US Census Bureau, the gender pay gap in the United States in 2019 was around 19%. This means that a woman who is at least 16 years old, working a full-time, year-round job, and who is part of the civilian employed population makes 81% as much as her male counterpart earns.

The pay gap varies, however, by state.

In Wyoming, for instance, the gender pay gap is 36.6%, the biggest wage gap in the nation based on those who are part of the “full-time, year-round civilian employed population 16 years and over with earnings” population. That is, median earnings of women who in this state make 63.4% of what men earn. In 33 states, the gender pay gap is larger than the national average.

Most states have implemented laws against gender discrimination, and the 1964 Civil Rights Act protects women at the federal level, yet disparities persist.

Vermont had the smallest pay gap in 2019 at 9%, with full-time, year-round women who are at least 16 and part of the civilian employed population making a median salary of $46,641, while men made $51,241.

Major cities show an even bigger discrepancy.

Around the US, salaries in large cities show an even greater range of pay discrepancy between men and women.

The American Association of University Women, a nonprofit that advocates for gender equality, examined how much women earn compared to men in 25 major metro areas using 2019 US Census data from the American Community Survey.

Out of the 25 cities, the narrowest gender wage gap overall is in Los Angeles, where women make approximately 90.6% of the median earnings for men, a pay gap of 9.4%. Detroit had the widest wage gap: Women’s median earnings of $44,486 in this city is 73.8% of men’s earnings of $60,278. That translates to a pay gap of 26.2%.

Overall, Black and Hispanic women face the biggest pay gap when comparing earnings to non-Hispanic white men.

Black and Hispanic women are most affected by the wage gap, especially when compared to non-Hispanic white men, who make up the largest demographic segment of the workforce.

We looked at the wage gap for different racial and ethnic groups using median earnings data for full-time, year-round workers from the US Census Bureau’s 2019 1-year American Community Survey.

Asian women face the smallest wage gap — they earn 91.4% of what non-Hispanic white men earned, resulting in a pay gap of just 8.5%. Non-Hispanic white women earn 78.1% of what non-Hispanic white men do, while Black women earn 61.1%. Hispanic women earn 53%, or a pay gap of 47%.

When compared to Black men, Black women earn 90.7% of what men earn, and Hispanic women make 80.6% of what Hispanic men do.

The larger disparity between non-Hispanic white men’s and women of color’s earnings could be attributed to the fact that “women of color suffer both because of their gender and their race,” according to an April 2016 report released by the Senate Joint Economic Committee’s Democratic Staff.

Another way of looking at that gap for women of different racial and ethnic groups is to consider when “equal pay day” for each group falls.

Number of days women have to work into the next year to earn as much as white men calendar graphic

The above calendar graphic shows how many days into the next year a woman has to work in order to earn what a non-Hispanic white man would have earned in the previous year, using estimates from the American Association of University Women.

Equal Pay Day for all women falls this year on March 24. This day falls much later in the year for some racial and ethnic groups.

For example, a typical full-time, year-round employed Black female worker starting on January 1, 2020, would have finally earned on August 3, 2021, what a similarly employed non-Hispanic white male worker would have made over the course of 2020 alone. That means Black women have to work around seven extra months to earn the same as non-Hispanic men earned in a single year in 2020.

It takes full-time, year-round employed Asian American or Pacific Islander (AAPI) women the shortest time to make what non-Hispanic white men would have made the year before. It would take a female Asian American or Pacific Islander worker over two extra months in 2021, or until March 9, to earn what a non-Hispanic white man earned the year before.

However, pay gaps for Asian women vary further. Although AAPI women make 85 cents for every dollar non-Hispanic white men make, an analysis from the Center for American Progress finds Burmese woman makes just 52 cents for every dollar the median non-Hispanic white man makes, for instance.

Read more about equal pay day by race here.

Women with children gain no salary boost, while men with children are rewarded.

In 2015, women with children were earning roughly the same as women without children, $727 and $726 respectively. However, working fathers with children earned about $141 more than a men without children. 

That gap has slowly been closing since then, as 2019 data from the Bureau of Labor Statistics show that women with children now make slightly more than women without kids under 18 at home.

Men with children see an earnings boost, and the difference between their weekly take-home pay was typically $189 higher than their counterparts without kids in 2019.

For working women, the difference in earnings between women with and without children is minimal. Working mothers only made $30 compared to other working women in 2019.

While this disparity can be attributed to differences in careers and work hours between men and women who have children and those who do not, a 2016 report released by the Senate Joint Economic Committee Democratic Staff says that there is also a difference in how working mothers and fathers are perceived by management.

According to the report, some employers may view motherhood as a “signal of lower levels of commitment and professional competence.” Working fathers, on the other hand, may be viewed as having “increased work commitment and stability.”

Women’s earnings are lower than men’s over the course of a lifetime.

The gender pay gap exists for workers across a lifetime.

Using Census data from the Minnesota Population Center’s IPUMS program, we found that the median full-time, year-round male worker earns more than his female counterpart at every year of age.

The gap is narrower for younger workers, with the median 25-year-old woman earning about 91.1% of the median 25-year-old man. Meanwhile, the median 50-year-old woman earns just 76.9% of her 50-year-old male counterpart.

Women over the age of 75 are almost twice as likely to live in poverty, according to the Senate report. Many women that age didn’t work when they were younger, so they have fewer sources of retirement income than men their age.

In 1950, about 34% of American women were in the labor force, compared to about 86% of men, according to the Bureau of Labor Statistics. By 1980, the numbers were 52% and 77% respectively — and the numbers have largely plateaued since then.

Before the pandemic, the labor force participation rate for women was around 58% in February 2020 and around 56% in February 2021. The labor force participation rate for men was about 69% in February 2020 and about 67% in February 2021.

The number of women promoted to the highest levels within companies reveals unconscious biases.

Very few women are CEOs of major corporations, or in the C-level suite of executives running corporate America.

Data from a study put together by McKinsey & Co. and Lean In show how men are promoted up, while women fall by the wayside. Based on the latest report, only one in five C-level executives were women. Women of color are furthermore underrepresented at the executive level, making up less than 1 in 30 in the C-suite.

Since 2015, there’s been an increase in the share of women in the C-Suite, while women in lower-level management roles have seen a smaller increase since that year. 

A recent IBM report also finds little change between leadership representation in 2019 and 2021. Based on the survey covering 10 industries from nine different regions, women made up just 10% of C-suite and 8% of executive board positions in 2019 and 2021.

The latest McKinsey report suggested that more women are working in senior positions, but it is still hard for women to move up from entry-level jobs into higher roles. “For every 100 men promoted to manager, only 85 women were promoted,” the report said, which affects the number of women being promoted to higher positions in the corporate pipeline.

However, women consistently ask for promotions and raises more. One of the reasons for the disparity between women asking for promotions and actually getting them was because when women negotiate, people like them less for it, according to a previous McKinsey study, covered by Insider, found.

According to Lean In, women who negotiate are more likely than men who negotiate to receive feedback that they are “intimidating,” “too aggressive,” or “bossy.”

Another poll by American Express and The New York Women’s Foundation found that less than one-third of women were comfortable with calling themselves ambitious. According to psychologists interviewed by Insider, the reasoning behind this is that the word could be seen as aggressive.   

Harvard Business Review found in its research that women ask for raises just as much as men, but men are more “successful” with their requests, with a success rate of 15% for women and 20% for men.

Read the original article on Business Insider

The US is leaving economic growth on the table by failing to close gender gaps in pay and hiring, Moody’s says

DC apartment concierge coronavirus
elecia Lewis, 50, works at a computer behind the desk where she works as a concierge at an apartment building in Chevy Chase, MD.

  • Failure to close gender gaps in the US dampens growth and hurts recovery, Moody’s said Monday.
  • The pandemic erased years of progress for prime working-age women participating in the labor force.
  • Closing the labor-participation gap between men and women can lift GDP by 5%, according to the IMF.
  • Visit the Business section of Insider for more stories.

Closing gender gaps in the US labor market can accelerate the economic recovery and provide a lasting boost to overall output, Moody’s Investors Service said Monday.

Gender disparities are nothing new to the US economy. Women earned less than men on average before the pandemic, and, during it, a lack of family-leave benefits forced many women out of the labor force as they assumed caretaking roles.

The gaps weighed on productivity before the pandemic, and the health crisis has only exacerbated the problems, the team led by Shahdiya Kureshi said.

For one, pursuing gender equality can swiftly lift gross domestic product. Closing the labor-participation gap by just 25% in the US would increase output by 2%, according to the International Labor Organization. Fully erasing the disparity would boost GDP by 5%, the International Monetary Fund estimated.

The recovery so far hasn’t been promising. Employment gains for both men and women were roughly the same from May 2020 to January 2021. Yet where men have retraced more than half of their decline in labor-force participation, women have only recovered 40% of their slump. This difference “weakened household consumption and financial stability” late in the pandemic, Moody’s said.

Within the prime working-age population of Americans 25 to 54 years old, labor-force participation among women plummeted and reversed years of steady gains. The rate peaked at 76.9% in January 2020 before plummeting as low as 73.5%.

The rate stood at roughly 75.5% at the start of 2021, the same level seen in January 2018.

One driving factor behind the harsher fallout is women’s overrepresentation in sectors hit hardest by the pandemic. Pay in the food preparation, personal care, sales, and education industries – where women make up the majority of workers – is between 18% and 40% below the average median weekly earnings for women. These sectors also saw significant pay disparities between men and women, according to government data cited by Moody’s.

Mothers have also shouldered a heavier burden through the health crisis. Women aged between 24 and 44 who weren’t employed in July 2020 were nearly three times more likely than men to name childcare responsibilities for their lack of work, according to Census Bureau data.

Where Congress can step in

There are already a few clear steps policymakers can take to close the aforementioned gaps, Moody’s said. Passing national family- and maternity-leave policies can iron out differences seen across various state programs, the team said.

“As women assume most of the family caretaking role, dependent care responsibilities that are not subsidized or compensated can pose a significant barrier for women’s entry into the workforce,” they added.

Childcare costs have also surged in recent years, making the lack of sufficient leave policies even more taxing for women. Married couples with children under age 5 spend 10% of their average monthly income on care for a single child. That sum exceeds the 7% level deemed affordable by the Health and Human Services Department, Moody’s said.

There’s also legislation that can quickly narrow the gender pay gap. The Paycheck Fairness Act has recently been reintroduced and aims to improve pay transparency at companies. Taking up such legislation and other pay-equity measures can elevate women in the workplace, improve employee retention, and productivity, Moody’s said.

Some promising legislation is on the brink of passage. The $1.9 trillion stimulus bill likely to be passed on Wednesday includes a child tax credit for parents to receive up to $3,600 per child. President Joe Biden has indicated he aims to make such a credit permanent. That would revolutionize how the government assists parents and could counter the pressures women feel to pass up work for caretaking.

Read the original article on Business Insider

EXCLUSIVE: Mailchimp CEO says ‘we have work to do’ on pay equity after company denies bias allegations

GettyImages 1178857927 SAN FRANCISCO, CALIFORNIA - OCTOBER 03: Mailchimp Co-founder & CEO Ben Chestnut speaks onstage during TechCrunch Disrupt San Francisco 2019 at Moscone Convention Center on October 03, 2019 in San Francisco, California. (Photo by Kimberly White/Getty Images for TechCrunch)
Mailchimp CEO Ben Chestnut.

Mailchimp CEO Ben Chestnut responded on Friday to allegations of gender discrimination and harassment at the company, telling employees in an email that “we have work to do” on pay equity and inclusion.

Chestnut’s email, which was seen by Insider, appeared to contradict internal messaging the company had sent just a day earlier.

Mailchimp chief people and culture officer Robin White told employees in an email Thursday the company has made its hiring, promotion, and pay processes more equitable over the years.

He also said an independent pay equity study “found that gender and race/ethnicity are not statistically significant indicators of differences in pay, and that differences in pay can be attributed to those factors we’ve established within our compensation system that are fair and reasonable.”

But Chestnut’s email on Friday appeared to show the issues are more extensive than White’s initial email acknowledged.

Both messages came in response to the resignation of principal software engineer Kelly Ellis, who accused the company of “sexism and bullying” and gender pay discrimination when she quit on Wednesday.

“The fact of the matter is that it has led to some difficult conversations and brought up some serious issues, and I want to be clear about this: I don’t want any of our employees to have a negative experience working here, and I want to know about it when it happens so we can find the problems and fix them,” Chestnut said.

“I’m also hearing that some of you have already raised concerns or pointed out problems you’re experiencing, and we haven’t made enough progress in response,” he added.

“Because a sensitive situation was shared on social media, we felt it was important to talk directly with employees to make sure they know Mailchimp does not tolerate any type of mistreatment, including discrimination, bullying, or harassment,” a Mailchimp spokesperson told Insider in a statement. “We want to combine what is an important conversation with action steps.”

However, while Chestnut’s email encouraged employees to offer feedback through various channels, it offered no concrete steps beyond promising “regular updates.”

Are you a current or former Mailchimp employee with insight to share? We’d love to hear about your experiences there. Contact this reporter using a non-work device via encrypted messaging app Signal (+1 503-319-3213), email (tsonnemaker@insider.com), or Twitter (@TylerSonnemaker). We can keep sources anonymous. PR pitches by email only, please.

Read the full email Mailchimp CEO Ben Chestnut sent to employees:

Subject: Hearing your concerns

Hi everyone, I’m following up on Robin’s email from yesterday because I know this has been hard for many of you, and I want you to know that I’m listening. I won’t share the confidential details or get into a back and forth about the specific situation that came up this week, but the fact of the matter is that it has led to some difficult conversations and brought up some serious issues, and I want to be clear about this: I don’t want any of our employees to have a negative experience working here, and I want to know about it when it happens so we can find the problems and fix them.

It has always been so important to Dan and me that Mailchimp is a company where all employees feel included, respected, and safe-a place where people can do their best, most creative work. Employees experiencing anything less is unacceptable to me and all of our leaders.

I’m hearing loud and clear that we have work to do, including needing greater transparency around pay equity and an intentional focus on inclusion. I want to address these issues head-on, and I know we’ll be stronger for it. I’m asking our leadership team to prioritize these issues and work with me to fix them. What we do needs to match what we say.

I would really appreciate your candid feedback to help us get there. I’m also hearing that some of you have already raised concerns or pointed out problems you’re experiencing, and we haven’t made enough progress in response. I want everyone to feel comfortable sharing their experiences and trust that we’ll make the right adjustments. Just as bullying, harassment, and discrimination won’t be tolerated-neither will retaliation or intimidation for speaking up.

I’m having office hours every day next week, and I’ve asked the entire executive team to hold office hours too. You can sign up here [LINK]. You’re also welcome to email me directly or message me on Slack. We’ve also heard that some of you would rather submit your feedback anonymously. That’s completely understandable, and we’re working on a new way to do that that guarantees confidentiality-will follow up with details next week.

We’re going to listen hard and change fast, responding to your feedback and taking action to invest in our culture and rebuild trust. You can expect regular updates on this. We know this will require work and focus beyond the next few weeks. We’re in it for the long haul. I hope you are too.

One final note: for many of us, the last few years have been a crash course in understanding how insidious forces like racism and sexism can show up in the workplace. I know I’ve learned a great deal, and with Cris Gaskin’s help, we’ve been intentional about better educating ELT to recognize these forces so we can address them. We’re still learning, but I feel better equipped to make the changes we need going forward.

Thank you all for your commitment to making Mailchimp a great place to work. I’m grateful for you.

/bc

Ben Chestnut
Mailchimp CEO & Co-founder

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Google will pay $2.6 million to workers over claims its hiring and pay practices were biased against women and Asians

FILE PHOTO: A logo of Google is seen at an office building in Zurich, Switzerland July 1, 2020.   REUTERS/Arnd Wiegmann
Logo of Google is seen at an office building in Zurich

Google has reached a deal with the US Department of Labor, requiring it to pay nearly $2.6 million in back wages to thousands of workers over claims that the company’s pay and hiring practices illegally disadvantaged women and Asians.

Google must also review its pay and hiring practices, conduct a gender pay equity study, and provide updates about its progress toward closing the gender pay gap as part of the deal, which was signed on January 15 and made public by the DOL on Monday. 

The department said that as part of an audit of several Google locations in Washington state, California, and New York, it had identified “preliminary indicators” that Google had failed to comply with a 1965 executive order that bars discrimination in the pay and hiring of federal contractors.

That audit revealed early evidence suggesting that, between 2014 and 2017, Google had paid female engineers at its Mountain View, California, as well as Seattle and Kirkland, Washington, locations “less than comparable male employees,” according to the DOL.

The agency also found evidence suggesting Google had discriminated against female and Asian applicants for engineering jobs at its San Francisco and Sunnyvale, California, locations as well as at the Kirkland facility.

“We believe everyone should be paid based upon the work they do, not who they are, and invest heavily to make our hiring and compensation processes fair and unbiased,” Google spokesperson Jennifer Rodstrom told Insider in a statement.

“For the past eight years, we have run annual internal pay equity analysis to identify and address any discrepancies. We’re pleased to have resolved this matter related to allegations from the 2014-2017 audits and remain committed to diversity and equity and to supporting our people in a way that allows them to do their best work,” Rodstrom added.

In total, around 2,565 women who worked at Google are eligible for back pay over wage discrimination allegations, while around 2,976 women and Asian applicants for Google jobs are eligible for back pay as a result of the alleged hiring discrimination.

In return for agreeing to the DOL’s “early resolution,” Google won’t have 39 of its facilities audited by the agency for five years, though the agency can still bring legal action if Google violates the agreement.

Google has faced allegations of racial and gender bias previously, including an ongoing class-action lawsuit over gender bias claims, and more recently, an employee rebellion over the company’s dismissal of AI ethics researcher Timnit Gebru.

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2020 brought a wave of discrimination and harassment allegations against major companies like Amazon, McDonald’s, and Pinterest. These are some of the year’s high-profile legal battles.

mcdonalds amazon pinterest
  • The #BlackLivesMatter and #MeToo movements have exploded in recent years, shedding light on systemic racial and gender bias across American society, and in particular, within American workplaces.
  • In 2020, workers spoke publicly in increasing numbers, often by taking their employers to court over pay disparities, harassment and abuse, and toxic company cultures.
  • Major businesses including Google, Amazon, McDonald’s, Pinterest, and Johnson & Johnson faced new legal battles this year over allegations of racism and sexism.
  • Here are the highest-profile racial and gender discrimination, harassment, and sexual abuse lawsuits that were filed in 2020 against US companies and executives or that added new plaintiffs.
  • Visit Business Insider’s homepage for more stories.

American workplaces have long been hotbeds of discrimination and harassment, particularly for those who aren’t white, light-skinned, male, straight, single, young, able-bodied Americans.

Since 2000, 99% of Fortune 500 companies have paid settlements in at least one discrimination or sexual harassment lawsuit, according to a report from Good Jobs First, and that’s not including the cases without a public record or incidents victims didn’t report.

Even though there are laws against pay discrimination, US companies on average still pay women just $0.82 for every dollar they pay men, and pay women of color even less – and executives have made virtually no progress in closing wage gaps across the country since the early 2000s. In 2019, the Equal Employment Opportunity Commission received more than 7,500 sexual harassment complaints, and 72,000 complaints about racial, sex, age, religious and other types of discrimination.

In recent years, however, empowered in part by the #BlackLivesMatter and #MeToo movements, American workers are increasingly turning to the courts to hold their employers accountable for breaking civil rights laws and demand companies fix racist, sexist, ageist, ableist, and other biased pay practices and work environments.

Since 2018, companies like Google, Uber, Fox News, Riot Games, UPS, Coca-Cola, and Target have paid out multimillion-dollar settlements, and this year brought an even larger wave of high-profile cases.

Here are some of the major workplace discrimination, harassment, and retaliation lawsuits that workers filed against America’s largest companies in 2020, as well as cases where new plaintiffs joined.

Have you faced discrimination or harassment in your workplace? Contact this reporter using a non-work device via encrypted messaging app Signal at +1 503-319-3213, or by email at tsonnemaker@insider.com. We can keep sources anonymous.

Amazon was accused in lawsuits this year of having hiring practices and COVID-19 safety measures that were racially biased, as well as discriminating against a pregnant transgender man.

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  • February: Former hiring manager Lisa McCarrick sued Amazon after her manager allegedly asked her to stalk job applicants’ social media accounts to determine their race and gender, and then fired her when she complained. [NBC News]
  • October: Shaun Simmons, a transgender man, claimed in a lawsuit that he faced harassment and retaliation while working at Amazon and was demoted and denied a promotion after telling his manager he was pregnant. [NBC News]
  • November: Former Amazon warehouse employee Chris Smalls sued Amazon over its pandemic response, claiming it violated civil rights laws by failing to protect Black, Brown, and immigrant warehouse workers from COVID-19 while looking out for its mostly white managers. [Business Insider]
  • November: Denard Norton, a Black Amazon warehouse employee, sued the company accusing it of denying him promotions based on race and ignoring his repeated complaints about coworkers’ racist remarks. [NJ.com]

Bloomberg LP was hit by lawsuits accusing it of aiding and abetting Charlie Rose’s sexual harassment, as well as racial and gender bias in its pay and promotion practices.

Bloomberg Rose
Michael Bloomberg accepts the Governor’s Award from Charlie Rose at the 55th Annual New York Emmy Awards gala at the Marriott Marquis Times Square on April 1, 2012 in New York City.

  • June: Two women who had accused ex-CBS News host Charlie Rose of sexual harassment also sued Bloomberg for “aiding and abetting” Rose, who operated his independently owned studio out of Bloomberg’s New York headquarters. [The Hollywood Reporter]
  • August: Former Bloomberg reporter Nafeesa Syeed sued the company for pay and promotion practices that were allegedly “top-down” and systemically biased against women of color. [HR Dive]

The Chan Zuckerberg Initiative, a private philanthropy run by Priscilla Chan and Mark Zuckerberg, was sued by employees who claimed Black employees are “underpaid, undervalued, and marginalized.”

mark zuckerberg priscilla chan facebook
Priscilla Chan and Mark Zuckerberg attend the 2020 Breakthrough Prize Red Carpet at NASA Ames Research Center on November 03, 2019 in Mountain View, California.

  • November: ex-CZI employee Ray Holgado sued the nonprofit, claiming he was consistently denied promotion and growth opportunities, and was treated differently because of his race. [Business Insider]

Disney was sued in 2019 over gender-based pay discrimination, and multiple additional women joined the lawsuit this year.

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  • March: Chelsea Henke became the tenth Disney executive to join a lawsuit filed against the company in April 2019 that alleged “rampant gender pay discrimination.” [LA Times]

Facebook became the subject of a federal complaint alleging the company is biased against Black employees and candidates.

mark zuckerberg
Facebook co-founder and CEO Mark Zuckerberg testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill October 23, 2019 in Washington, DC.

  • July: While not a formal lawsuit, a Facebook recruiter and two rejected job applicants filed a complaint with the Equal Employment Opportunity Commission accusing Facebook of “racial discrimination” against Black workers and applicants “in hiring, evaluations, promotions, and pay.” [Business Insider]

Fox News ex-host Ed Henry was accused of sexual assault, while hosts Tucker Carlson, Sean Hannity, Howard Kurtz, and Gianno Caldwell were all accused of harassment in a lawsuit by a former producer.

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Fox News ex-host Ed Henry, and hosts Tucker Carlson and Sean Hannity.

  • July: Former Fox News producer Jennifer Eckhart claimed in a lawsuit that ex-host Ed Henry violently raped her, and that Fox News knew and refused to discipline him, while former Fox guest Cathy Areu alleged she was sexually harassed by Sean Hannity, Tucker Carlson, Howard Kurtz, and Gianno Caldwell. [Business Insider]

Goldman Sachs allegedly covered up sexual misconduct by a top lawyer, and the woman who spoke publicly about it sued, claiming the company retaliated against her.

Goldman Sachs
A sign is displayed in the reception of Goldman Sachs in Sydney, Australia, May 18, 2016.

  • October: Former Goldman Sachs employee Marla Crawford claimed one of the bank’s top lawyers, Darrell Cafasso, sexually harassed a female subordinate and that Goldman covered up the allegations and retaliated against her for trying to speak publicly about it. [Business Insider]

Google ex-employees who sued the company in 2017 over gender pay disparities asked the court this year to expand their case to include 10,800 additional coworkers.

Google Walkout.JPG
Protesters at the 2018 Google walkout.

  • July: Four employees who sued Google in 2017, alleging women at the company are paid about $16,794 less than men in similar positions, asked the court to grant their lawsuit class action status, which would allow them to represent 10,800 other female Google employees. [Business Insider]

Hearst, the parent company of Esquire magazine, was sued by an ex-executive at Esquire who claimed she faced gender and age discrimination from her former boss.

GettyImages 1272616103 NEW YORK, NEW YORK - SEPTEMBER 14: A view of the Hearst Tower as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 14, 2020 in New York City. The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production. (Photo by Alexi Rosenfeld/Getty Images)
Hearst Tower in New York City, NY.

  • September: Former Esquire ad executive Lauren Johnson, 52, sued Hearst, the magazine’s parent company, claiming she faced age and gender discrimination as well as retaliation for complaining, and that her boss Jack Essig “regularly mocked” older employees and female workers. [Business Insider]

Johnson & Johnson was sued by an ex-exec who claimed she faced “sexist, harassing and demeaning” behavior from male coworkers due to her gender and sexual orientation.

GettyImages 1269284050 Building of the company Johnson and Johnson in the Juan Carlos I Business Park in Madrid, it is an American multinational of medical, pharmaceutical and perfumery products, Spain. (Photo by Cristina Arias/Cover/Getty Images)
  • December: Gina Bilotti, a high-ranking 25-year veteran of Johnson & Johnson, sued the company, claiming she had endured years of discrimination, harassment, abuse, and retaliation on the basis of her gender and sexual orientation. [NJ.com]

Marriott was sued by a Black ex-employee who claimed he was fired in retaliation for complaining about racist behavior by coworkers.

FILE PHOTO: A guest arrives at the Marriott Marquis hotel in Times Square in New York City, U.S., November 8, 2017. REUTERS/Brendan McDermid
A guest arrives at the Marriott Marquis hotel in Times Square in New York

  • July: Kaseam Seales, formerly a bellhop at a Marriott hotel in New Jersey, claimed the company fired him in retaliation for complaining that his coworkers were exhibiting racist behavior toward him, and that they consistently gave more lucrative shifts to white bellhops. [Providence Journal]

McDonald’s is facing two racial discrimination lawsuits from Black franchisees as well as a class action sexual harassment suit, and could be on the hook for billions of dollars in damages.

GettyImages 1216832772 PHILADELPHIA, PA - JUNE 01: protesters march with three placards stating "BLACK Lives Matter" past a vandalized McDonald's restaurant on June 1, 2020 in Philadelphia, Pennsylvania. Demonstrations have erupted all across the country in response George Floyd's death in Minneapolis, Minnesota while in police custody a week ago. (Photo by Mark Makela/Getty Images)
  • April: McDonald’s employees filed a $500 million sexual harassment class-action lawsuit against the company, claiming they faced physical and verbal harassment from coworkers and customers. [Business Insider]
  • August: 52 Black ex-franchisees filed a $1 billion racial-discrimination lawsuit against McDonald’s, claiming the company sent them on “financial suicide missions” by pushing them to open stores in less profitable locations, eventually cutting the number of Black franchisees by 50% over the past two decades. [Business Insider]
  • October: In a separate class action suit, current Black franchisees said they faced a “pipeline of discrimination” from McDonald’s, which allegedly imposed “two standards” for white and black owners, giving white franchisees better opportunities while being more strict with Black owners on safety inspections. [Business Insider]

Morgan Stanley’s first diversity officer sued the bank over claims of racial discrimination and retaliating against employees who tried to make its culture more inclusive.

GettyImages 918882888 LOS ANGELES, CA - FEBRUARY 15: Morgan Stanley's director of the Urban Markets Group Marilyn Booker attends the NBA All-Star Bowling Classic at Lucky Strike LA Live on February 15, 2018 in Los Angeles, California. (Photo by Allen Berezovsky/Getty Images)
Marilyn Booker, Morgan Stanley’s former global diversity officer.

  • June: Marilyn Booker, Morgan Stanley’s first diversity officer, claimed in a racial-discrimination lawsuit that the bank retaliated against her and other Black female employees and eventually fired her for trying to make the bank’s workforce more diverse and inclusive. [The Washington Post]

The NCAA was sued by HBCU athletes who claimed the organization’s academic performance policies are biased against their schools.

GettyImages 624399734 MEMPHIS, TN - NOVEMBER 19: Troyce Manassa #4 of the Savannah State Tigers shoots a layup against the Memphis Tigers on November 19, 2016 at FedExForum in Memphis. Memphis defeated Savannah State 99-86. (Photo by Joe Murphy/Getty Images)
Troyce Manassa, a former member of Savannah State University’s basketball team, sued the NCAA over racial bias.

  • December: Athletes from Historically Black Colleges and Universities (HBCUs) sued the National Collegiate Athletic Association, college sports’ governing body, claiming its academic performance standards — which are ostensibly meant to improve graduation rates — simply ended up discriminating against their schools, and thus disproportionately impacted Black student athletes. [NPR]

Oracle was sued in 2017 by female employees over gender pay disparities, and a court earlier this year opened the class action to more than 4,000 other current and former employees.

larry ellison oracle
  • May: Three female Oracle employees sued the company in 2017, claiming it paid women less than men, citing an economists’ study that found the pay gap averaged $13,000 per year. This year, a court granted the case class action status, opening the door for more than 4,000 current and former employees to join the suit. [The Mercury News]

Pinterest recently paid a former executive $22.5 million to settle a gender discrimination lawsuit and is facing another from shareholders over alleged racial and gender discrimination.

pinterest hq
A woman walks past sign at the headquarters of social network Pinterest in the South of Market (SoMa) neighborhood of San Francisco, California, October 13, 2017.

  • August: Ex-Pinterest COO Françoise Brougher filed a gender-bias lawsuit against the company, claiming she faced pay discrimination and sexist behavior from other executives. Pinterest paid $22.5 million in December to settle the suit. [Business Insider]
  • December: Following Brougher’s lawsuit and explosive allegations by dozens of current and former employees, Pinterest shareholders sued the company, accusing it of harming investors by creating and perpetuating a culture of racial and sex discrimination. [Business Insider]

Uber was sued by a driver who claimed the company’s five-star rating system is racially biased.

A protester gestures as Uber and Lyft drivers drive through Beverly Hills on their way to demonstrate outside the recently purchased $72 million home of Uber co-founder Garrett Camp, to protest the first day of an "IPO cash out" in Beverly Hills, California on November 6, 2019. - The drivers claim that "executives are poised to cash out their IPO billions while at the same time continuing to drive down worker pay, leaving many drivers sleeping in their cars and unable to provide for their families". (Photo by Mark RALSTON / AFP) (Photo by MARK RALSTON/AFP via Getty Images)
An Uber driver protests outside the home of Uber co-founder Garrett Camp.

  • October: Thomas Liu, a former Uber driver, sued the company after it kicked him off the platform because his driver rating had fallen below a 4.6 out of 5. He claimed Uber’s use of the system amounted to “intentional race discrimination” because of the “widely recognized” notion that racism often slips into customers’ evaluations of workers. [Business Insider]

Warner Bros. was sued by a former executive who alleged she faced gender discrimination and harassment from men in the company’s senior ranks, which she called an “old boys club.”

GettyImages 136247596 The Warner Bros logo outside the Warner Bros Studio lot in Burbank, California, 30th September 2008. (Photo by Amy T. Zielinski/Getty Images)
  • October: An ex-Warner Bros. executive sued the company over gender discrimination, claiming she was fired in retaliation for raising complaints about sexist behavior and harassment by male executives. [Deadline]

WeWork was hit with at least three lawsuits from former employees alleging harassment, discrimination, and that a manager intimidated an employee by, among other things, bringing a crossbow and knives to work.

adam neumann house 4x3
  • July: WeWork became the subject of three new gender and race discrimination and harassment lawsuits this year, including from an employee who claimed her boss brought a crossbow and knives to work, implied he had connections to the Mafia, and made unwanted sexual advances. Two Black employees also said they were paid less than white coworkers and faced retaliation for raising issues, with one also saying she was sexually harassed. [Business Insider]

Are there other high-profile discrimination or harassment lawsuits that should be added to this list? Contact this reporter using a non-work device via encrypted messaging app Signal at +1 503-319-3213, or by email at tsonnemaker@insider.com.

Read the original article on Business Insider