The United States women’s national soccer team (USWNT) is known for its match victories, championships and gold medals. But perhaps their biggest victory came off the field.
In February, the USWNT settled its unequal pay and treatment class action lawsuit against the United States Soccer Federation (USSF) for $24 million, both sides concluded. announced in a joint press release. Per the settlement, players will receive a lump sum of $22 million, which will be split among the USWNT.
An additional two million dollars will be put into an account to benefit USWNT players in their post-career goals and charitable efforts related to women’s and women’s soccer. The USSF will also begin paying men and women equally in all tournaments and exhibition matches.
Players view the settlement as a victory for gender equality.
“For us, this is a huge win in ensuring that we not only right the wrongs of the past, but prepare the next generation for something we could only have dreamed of,” said Megan Rapinoe, a the USWNT. NBC’s “Today” show.
On Twitter, the USWNT Players Association applauded the players and their contentious team “for their historic success in combating decades of discrimination perpetuated by the U.S. Soccer Federation.”
However, The New York Times said the settlement is contingent on the ratification of a new collective bargaining agreement for the USWNT and USSF. This process could take months as the USSF seeks a single contract proposal covering both the men’s and women’s teams.
A “roller coaster” process
The USWNT’s battle for equal pay began in 2016, when several stakeholders filed a complaint with the Equal Employment Opportunity Commission against the USSF for pay discrimination and unequal working conditions .
Their lawsuit alleged that American women’s soccer players were paid less than male players despite their superior performance on the field. For example, the women’s team received nearly $2 million in bonuses after winning the World Cup in 2015, while the men’s team received more than $5 million despite being eliminated in their tournament, claims the trial.
In 2020, a judge threw out the equal pay portion of the lawsuit due to structural differences in the contracts of male and female players. The players appealed in 2021, pointing out that the judge did not look at pay rates and that receiving bonuses was tied to whether the games won.
In the end, the USWNT came out on top.
“I’m not a big fan of roller coasters, literally or figuratively,” Rapinoe told ESPN, talking about the ups and downs of winning the trial. “I thought we would get to this point, 100 percent. I thought we would win from the beginning. It’s a win for us. And it’s a win for the next generation players, for the players. around the world.”
Addressing equal pay
Pay inequity is also a problem on another type of playing field: the workplace.
Women have long been paid less than men. In 2022, women earn 82 cents for every dollar earned by men, comparing all women to all men, according to data from the software company Payscale. For women of color, the gap is even greater.
Sixty-six percent of employers plan to address pay equity this year and more than half said they plan to conduct a pay equity analysis based on gender or race, according to the Payscale report. But fewer than one in four companies say they are actively tackling their pay gaps.
Pay inequity can deteriorate a company’s culture, creating a toxic atmosphere that makes recruiting and retaining talent difficult. It can also lead to lower lifetime wages and higher poverty rates among women.
“Pay equity is a way that companies can demonstrate that they respect and value individuals, their skills and expertise,” said Irina Konstantinovsky, executive vice president, chief human resources officer and chief diversity officer of the biopharmaceutical company Horizon Therapeutics. “And when people feel valued and respected, we’ve found that they bring their best thinking to everything they do.”
In 2020, the Society for Human Resource Management highlighted the importance of pay equity, how equal pay improves company culture and a list of best practices for fair compensation. In 2021, the organization commissioned a report detailing the latest trends in pay equity.
