Report: Paycheck Fairness Act will Backfire

The buzz about the “Paycheck Fairness Act” hasn’t stopped despite it’s defeat last week in the Senate.

Republicans have accused Democrats of using paycheck fairness for purely political gains.

Democrats were aware the issue was not gong to pass in the Senate in last week’s vote, but wanted to have a good number of Republicans on record as being against it, so they could run political ads against Republicans in this fall’s election.

It turns out that not just most, but every Republican senator voted against it.  President Barack Obama and his re-election campaign are using paycheck fairness to continue their “war on women” accusations against Republicans.

According to a recent report by the Independent Women’s Forum, not only would lawyers be the “chief beneficiaries” of the bill, but paycheck fairness would actually lead to employers “hav[ing] an incentive to adopt more rigid compensation practices, as well as employ fewer workers, since each worker (particularly a female worker) would represent another potential lawsuit.”

Like any other regulation place on business, this bill will put more of a burden on job creators, thus assuring that hiring of new employees will be slower and more hesitant in the future.

If the Paycheck Fairness Act were to be passed, it would not help women one bit.

“Ultimately, the Paycheck Fairness Act would fail to create greater justice, and lead to a less flexible workplace and fewer opportunities for both men and women,” the report said

Many states pass their own minimum wage laws, some of which are higher than the federal minimum wage.

In 2009 when the current federal minimum wage law was increased to $7.25 per hour, it was cited that a higher minimum wage is going to drive out many entry-level workers, as businesses have to reduce staff or hiring, because they can afford fewer workers.

 

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