On average, US women make 82 cents for every dollar a man earns. Though it is hard to prove, researchers believe this is due to discrimination against women. While the Obama administration attempted to enact laws that promote transparency within companies, the first Trump administration tried to put a halt to those rules. While ultimately, Trump lost in court and the rule was reinstated, it’s unclear what will happen in round two of the Trump administration and if our slow and steady progress towards gender pay equality will be diminished.
The Obama-era rule enacted to close the gender pay gap
Under Barack Obama’s administration, President Obama signed into action new rules requiring large companies to disclose salary data based on gender and race. This was an attempt to create transparency in large companies regarding what they were paying their people of color and women compared to other people. While slow but steady, Obama’s changes helped decrease the gender pay gap by 2 cents. However, as you can probably guess, big businesses hated this rule. They argued it was a burden and not actually effective in closing the gap.
Trump’s first attempt to overturn gender pay gap laws
However, during Trump’s first administration, he attempted to overturn this provision of requiring data disclosure by big businesses enacted by Obama. The Trump administration supported the argument from big businesses and also claimed that sharing this data is too burdensome for companies. It also questioned its effectiveness in actually addressing wage discrimination.
In August of 2017, the administration put the rule on hold. A few short months later, the National Women’s Law Center and other plaintiffs sued the White House and won. US District Judge Tanya Chutkan said the Trump administration had not taken the proper steps to revoke the regulation and that the administration’s reason to scrap it was “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.”
Does this rule really help close the gender pay gap?
Some people may be thinking but “Does this rule even really move the needle toward equality?” And while it may be unclear whether or not this exact rule has done anything, we do know that the Obama administration decreased the gender pay gap by at least 2 cents. In addition, the main overarching concern here is that if the first Trump administration is willing to do this, what else will they attempt to do in the second round to hinder women’s equality?
Prenups are a proactive measure against political uncertainty
The moral of the story is that only time will tell what other gender pay laws Trump’s second administration will attempt to overturn and what progress will be halted when he takes office for a second time. Trump’s previous actions while in office made it clear that big businesses take priority over progress toward pay equality.
So, how does a prenup help? Well, prenups are a proactive measure for women to take when other political setbacks are at play. For instance, a widening gender pay gap. Getting a prenup that protects a woman in a divorce can help prevent further financial inequities. Prenups give women back the power and control to protect their financial future, no matter what the political landscape may be.
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
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