Equal Pay

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On June 7, 2021, Connecticut Governor Ned Lamont signed legislation amending the state’s existing salary history inquiry and pay equity statutes. As we discuss below, this amendment – which goes into effect on October 1, 2021 – places additional obligations on Connecticut employers and modifies the existing standard for pay equity claims in the state.

Newly required wage range disclosures

Under the newly-adopted measures, Connecticut employers will be barred from engaging in the following actions related to the disclosure of wage ranges:

  • Failing or refusing to provide an applicant for employment the wage range for a position for which the applicant is applying, upon the earliest of (A) the applicant’s request, or (B) prior to or at the time the applicant is made an offer of compensation; and,
  • Failing or refusing to provide an employee the wage range for the employee’s position upon (A) the hiring of the employee, (B) a change in the employee’s position with the employer, or (C) the employee’s first request for a wage range.

Continue Reading Connecticut updates its salary history inquiry and pay equity laws

Federal contractors and other employers should anticipate greater scrutiny related to their compensation policies and practices as a result of recent policy shifts. President Biden has made it clear that a key priority of his administration is closing the gender and racial wage gap that currently exists in the United States, and that he plans to encourage changes at both the state and federal levels. At the federal level, that means the reintroduction of the Paycheck Fairness Act, the rollout of new policy initiatives, and the issuance of executive orders. This prioritization of pay equity will likely result in renewed enforcement efforts related to pay discrimination from the Office of Federal Contract Compliance Programs (OFCCP). State legislatures also continue to pass laws enhancing pay equity and transparency.

Background

The Equal Pay Act (EPA), passed in 1963, was one of the first anti-discrimination laws enacted and was intended to abolish wage disparity based on sex. The act prohibits wage discrimination between men and women who perform jobs that require substantially the same skill, effort and responsibility within the same company. Despite the existence of the EPA, however, the gender-wage gap still exists with the focus on pay disparities across both gender and race, as evidenced by statistical data.

Biden priority

On International Women’s Day, March 8, 2021, President Biden created the White House Gender Policy Council via Executive Order, to ensure that gender equity and equality are pursued in domestic and international policy. Specifically, the Council is tasked with advancing gender equity and equality by coordinating federal policies and programs that address the structural barriers to women’s participation in the labor force and by decreasing wage and wealth gaps. The Council is to work closely with the Domestic Policy Council, which is coordinating the interagency, whole-of-government strategy for advancing equity, as set forth in Executive Order 13985 of January 20, 2021 (Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.) In addition, the President has promised additional funding for agencies such as the Equal Employment Opportunity Commission (EEOC), the U.S. Labor Department’s Office of Federal Contract Compliance Programs, and the Justice Department’s Civil Rights Division to investigate violations and enforce pay equity laws.Continue Reading Biden’s pay equity priority: federal and state updates, and what federal contractors can expect going forward

New York lawmakers had a busy summer overhauling many of the state’s existing workplace laws. Many of the newly enacted changes, as well as others enacted within the past year, become effective in October 2019. Below we will highlight the new laws taking effect in October and discuss measures employers should take to ensure their workplaces are compliant.

Already in effect:

  • All New York State employers must provide new hires with a notice containing the company’s sexual harassment policy. In addition, at the required annual sexual harassment prevention training sessions, employers must again furnish to all employees a notice containing the sexual harassment policy and, also, the information presented at the training.

While the law does not indicate precisely what information presented during the training must be provided, we recommend that employers provide new hires with the handouts and a copy of   the presentation (presumably, PowerPoint slides) used at the training program.Continue Reading Fall to bring more than just foliage for New York employers

The New York state legislature recently passed two bills providing additional protections to employees asserting unpaid wage claims. These changes are the latest in the state’s overhaul of its employment law landscape this summer. As we discussed in previous posts, New York recently enacted limitations on the use of nondisclosure provisions in settlement and separation agreements, new standards for litigating and defending harassment claims, expanded equal pay protections, a statewide ban on salary history inquiries, and additional changes to the state’s anti-discrimination laws. We will address the two new laws and their implications in this two-part series.

The first bill expands the definition of retaliation under the New York Labor Law. By way of background, New York has long prohibited retaliation against employees who complain of alleged wage violations or otherwise cooperate with state regulators regarding an alleged violation of wage and hour laws. Specifically, an employer cannot “discharge, threaten, penalize, or in any other manner discriminate or retaliate against any employee” for complaining about wage practices such as minimum wage violations, unpaid overtime, improper deductions, and the like.Continue Reading New York Continues Expansion of Worker Wage Protections (Part 1)

Acting New Jersey Governor Sheila Oliver recently signed into law bill A-2903/S-1790, which includes sweeping changes to New Jersey civil and criminal provisions related to the payment of wages, including increased penalties and fines. A summary of the key provisions of this law is below.

First, the law amends the Wage Payment Law, Equal Pay Act, and the N.J. State Wage and Hour Law, such that if an employer owes unpaid wages or wages lost due to retaliation, the employee is allowed to recover not only the wages owed but also liquidated damages equal to 200 percent of the unpaid wages, plus reasonable costs and attorney’s fees. The law provides that an employer may avoid liquidated damages for its first violation if the employer establishes that its action was taken in good faith, with a reasonable basis to believe that its action was not a violation, and the employer admits the violation and pays the amount owed within 30 days.

Second, the law triples the applicable statute of limitations. Specifically, the law extends the limitations period for a wage recovery action from two to six years.Continue Reading New Jersey increases wage protections and penalties for violations

Today is the third in a five-part blog series on New York’s sweeping changes to the legal landscape for Empire State employers. In prior posts, we covered limitations on the use of nondisclosure provisions in settlement and separation agreements and the new standards for litigating and defending harassment claims. Today, we will cover the expansion of New York’s equal pay law.

As part of New York’s overhaul of its existing anti-discrimination laws, legislators have expanded the scope of the state’s Equal Pay Act (N.Y. Labor Law § 194) to encompass all classes and characteristics protected by the New York State Human Rights Law. In addition, the new law lowers the standard of proof needed to establish pay discrimination. These changes will take effect 90 days after Governor Cuomo signs the legislation, which he is expected to do.

By way of background, federal and New York State law have, for decades, prohibited pay differentials between employees of the opposite sex who perform equal work. In 2015, New York amended its Equal Pay Act to limit an employer’s defenses against equal pay claims. The State also increased the amount of liquidated damages available to a prevailing plaintiff-employee in an equal pay lawsuit.Continue Reading New York Lawmakers Upend the Employment Law Landscape…Again (Part 3)

On July 1, 2018, the Diane B. Allen Equal Pay Act becomes effective in New Jersey. The law contains a myriad of requirements, including recordkeeping and anti-retaliation provisions, and it prohibits pay disparities based on an employee’s membership in a protected class (i.e., sex, race, color, age and religion). The law provides a six-year statute…