Oregon State Continues to Struggle with Gender and Racial Pay Gaps Despite Efforts

Despite efforts to close the pay gap for women and people of color working for the state of Oregon, a report released on Equal Pay Day, March 14th, found that they still earn far less than white men. The study, conducted by the Secretary of State’s Audits Division, compared a 2015 Portland State University salary study with the state’s payroll in 2022 and found that the pay gap for women remained the same over that period. In both years, women working for the state earned 83 cents in base pay compared to $1 for white men. The equity gap also grew for people of color over the seven years, as they earned 91 cents in 2015 and only 88 cents in 2022, compared to $1 for white men. The report calls for more action to close persistent wage gaps for women and people of color in state government.

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In 2017, the Oregon Legislature passed an equal pay bill to narrow inequities. The law applies to the state and private sectors but excludes federal agencies. The law makes it illegal for employers to ask applicants about their salary history and states that employee compensation should be based on factors such as education, training, and experience. The law also opened the door for employee lawsuits against their employer over unequal pay.

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The report found that the law had affected starting state salaries, as the state no longer relies on an employee’s prior salary history, and wages are now based on experience and education, among other factors. The state analyzed pay in 2019 for 33,000 employees under the executive branch and issued payment raises to narrow gaps. It did the same in 2022 after studying the salaries of more than 40,000 employees. However, the report found that white employees still received the most significant pay adjustments in 2019 and 2022, while people of color received the smallest.

The report notes that the effects of systemic racism have curbed learning opportunities and experience for women and people of color, making experience and seniority a contributing factor to the wage gaps among state employees. The report called for potential legislation to address equity gaps and for the Department of Administrative Services to review pay equity processes to determine the causes of systemic wage gaps in state government and if adjustments are needed for future rounds of pay equity studies. These adjustments could focus on education and culture.