Obama’s Equal Pay Rule halted by Trump

Obama’s Equal Pay Rule halted by Trump

One of Obama’s successes during his tenure as the US president was to ensure that large companies disclose to the federal government how much they pay their employees by gender and race. This rule was to bridge the wage gap between gender and racial groups by enhancing greater transparency. In his campaign to overhaul the policies made under the Obama administration, Donald Trump finally stopped the equal pay rule, saying it simply could not have worked.

Countrywide Outrage

The decision made public on Tuesday evening prompted nationwide outrage from groups that work to empower women and minority groups. However, most of the outrage was saved for Ivanka Trump, who moved to the capital promising to speak for women. During the run-up to the November 2016 election, she spoke out against workplace discrimination as well as wage disparities. In a press statement, Ivanka said that the intention of making the rule was good, but it would simply not work.

In a memo from Neomi Rao, White House’s Information and Regulatory Affairs spokesperson, she said that the rule lacked practicality and an unnecessary burden. She continued to say that the Equal Pay Rule did not address confidentiality and privacy issues properly.

U.S. Chamber of Commerce

Since the rule came into effect, the U.S Chamber of Commerce, the National Retail Federation, as well as other major business associations have consistently lobbied against the rule. They cited that the reporting requirements will add to the operational costs and it would not yield the necessary information. However, those in support of the rule argued that reporting the wage information would have forced companies to make corrective measures and be more conscious of wage disparities.

The full impact of this new development will definitely affect the economy and the long-term results. 

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