Issue 29: The pay gap is out of control

Women remain underpaid across industries, even in pro sports. And in other news, water is still wet.

Last Monday was the WNBA Draft and I'll be honest, it was the first time we ever watched the WNBA Draft. But this is also the first year I've ever watched women's college basketball. And everyone knows the name of the women at the center: Caitlin Clark.

We won't credit her with putting the WNBA on the map, because that's a discredit to the phenomenal work of the league, but she has put it into the national spotlight following an illustrious college career at Iowa University and as the No. 1 pick of the WNBA Draft.

And even with the accolades, the staggering viewership - which significantly outperformed the men's March Madness viewership repeatedly - Caitlin's four rookie salary with the Indiana Fever is less than 10% of the one-year rookie salary of her NBA counterpart, the first pick of the NBA draft.

Caitlin's year 1 salary of about $76,535 is .73%% of the annual salary of the NBA rookie contract, a base salary of $10,500,000. It's worth noting that according to the WNBA commissioner, Caitlin will likely earn closer to $500,000 after revenue splits and distributions. This would still be less than 5% of a NBA rookie salary.

What causes the pay gap and can Caitlin Clark help close it?

Due to the pay equity gap in professional sports, and especially in the NBA and WNBA, many players are forced to supplement their income with endorsement and sponsorship deals, and by playing overseas (as was the case with Brittney Griner).

The pay gap is influenced by many factors including the length of the season and number of games (NBA teams play 2x as many games), the value of broadcasting rights, and the terms of the WNBA and player's union collective bargaining agreement (CBA). According to economists:

NBA players are able to receive 50 percent of all “shared revenue,” which includes everything from ticket sales to broadcasting rights. WNBA players, however, only receive a share of "incremental revenue," after hitting preset targets - which the league has failed to meet.

As a result, "about 40 percent of all NBA league revenue goes to player salaries, while the WNBA puts roughly 10 percent of all league revenue toward its players’ salaries."

The WNBA 2024 class, with a slew of superstars like Angel Reese, Cameron Brink, and Kamilla Cardoso, is going to put a spotlight on the sport - leading to a likely increase in broadcast right values, game attendance, merch purchases, and the closing of the pay gap in professional athletes.

Women are continuously underpaid across industries, and the pay disparities among women of color are much larger, leading to systemic disadvantages. We support efforts to close the gender pay gap.

Virginia Governor vetoes PFL bill

?In a disappointing blow to working parents and families, Virginia Governor Glenn Youngkin vetoed a bill to establish a Paid Family Leave (PFL) program in Virginia in 2026. The bill proposed 12 weeks of paid leave at up to 80% of wage replacement for employees who take leave to care for a new child (it would have covered birth, adoption and foster) or a family member, funded entirely through mandatory payroll tax contributions.?

To date, there are only 10 active Paid Family Leave programs in the U.S (9 states and the District of Columbia), covering only 27% of private sector employees. In March, President Biden included funding for a national paid family and medical leave program in his fiscal year (FY) 2025 budget, proposing up to 12 weeks of paid leave for qualified caregivers.

The U.S. has a Black maternal healthcare crisis

Did you know that Black birthing mothers are up to 3x more likely to die during labor and delivery as a result of preventable complications? The U.S. has a maternal healthcare crisis, but especially a Black maternal healthcare crisis. There is a tremendous need for social infrastructure, programming, and equitable support for all mothers.?

Earlier this month Dirk Doebler, our founder and CEO, attended the Chamber of Mothers Power Breakfast in Washington D.C. to raise awareness of kick off Black Maternal Health Week alongside the Congressional Dads Caucus and Mamas Caucus.?

Learn more about the advocacy work of the Chamber of Mothers and their efforts to pass the Momnibus Act, a collection of 13 bills to improve maternal health.

Earn SHRM PDCs with Parento???

Parento is officially a SHRM-CP and SHRM-SCP Recertification Provider, providing members with Professional Development Credits.

Register for Leadership Power Hour on May 7th at 1pm ET and earn 1 PDC!?

Why should employers hire parents? Join our conversation next Tuesday ??

Join us as we break down why companies need to hire parents (hint: parents get it done ??) with Delphine Carter from Boulo Solutions .

Tuesday, April 30th at 2pm ET on Instagram (@parentoleave)

See you next week!

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