How much control should the government have over what you pay your employees? That’s the question raised by the International Warehouse Logistics Association (IWLA) as Congress returns for the lame duck session and the Senate prepares to vote on the Paycheck Fairness Act (S. 3772). According to IWLA, this bill would give the federal government and the courts unprecedented power to second guess routine pay-setting decisions that employers make every day.
“Under current law, employers have wide latitude to establish compensation systems that make sense for their business as long as they do not violate anti-discrimination laws,” an IWLA announcement reads. “The Paycheck Fairness Act would make it much more difficult for all employers to justify legitimate pay differences. If S. 3772 is enacted, you could no longer pay your workers differently based on market forces, negotiating ability, or even the amount of revenue they generate for your bottom line unless you could prove it was a ‘business necessity.’”
IWLA is urging logistics professionals to urge their senators to vote no on S. 3772. The House already passed a similar bill, the Association noted, making it more important to block Senate action.