New Jersey’s comprehensive new equal pay law, the Diane B. Allen Equal Pay Act (the “Act”), took effect last month. The law amends the New Jersey Law Against Discrimination (“NJLAD”) by making it a prohibited employment practice for an employer to compensate an employee who is a member of a “protected class” less than the amount paid to employees who are not members of that protected class for “substantially similar work, when viewed as a composite of skill, effort, and responsibility.” Employers can prove a compensation differential is lawful by showing it is due to a seniority system, merit system, or by satisfying several factors including that the differential is based on legitimate, bona fide factors other than the employee’s membership in a protected class, and that the factors supporting the differential are job-related and based on a legitimate business necessity. The Act extends the NJLAD’s two-year statute of limitations to a six-year statute of limitations for wage discrimination claims.
Massachusetts recently joined a growing list of states amending their equal pay legislation. On July 1, 2018, the Act to Establish Pay Equity, originally passed in 2016, took effect, amending Massachusetts’ existing Equal Pay Act.
The law bans pay differentials on the basis of sex where two people perform comparable work, adopting the more liberal “equal pay for comparable work” standard, as opposed to the federal law’s “equal pay for equal work” standard. Comparable work is defined as work that requires substantially similar skill, effort, and responsibility that is performed under similar working conditions. Like other equal pay laws, employers can plead certain affirmative defenses in response to an employee’s claim of pay discrimination, if the employer can show the pay differential is due to:
Westchester County’s salary history ban, signed on Equal Pay Day in April 2018, took effect on July 9, 2018. The law amends the Westchester County Human Rights Law, and makes it unlawful for an employer, including labor organizations and employment agencies or “agents” thereof, to:
- rely on the wage history of a prospective employee from any current or former employer in determining wages; and
- request or require as a condition of being interviewed, as a condition of being considered for an offer of employment, or as a condition of employment, that a prospective employee disclose wage history information.
In the wake of the #MeToo movement, a number of states are considering legislation that would limit an employer’s ability to use non-disclosure agreements (“NDAs”) when settling sexual harassment claims. New York was the first state to enact such legislation, which was passed as part of a wide-ranging budget bill that takes effect July 11, 2018. New York’s law bans non-disclosure provisions in settlements of claims involving sexual harassment allegations, unless confidentiality is the “complainant’s preference,” provided some onerous procedures are complied with. Washington State passed a similar law. Arizona, California, and Pennsylvania are also considering legislation to restrict the use of NDAs.
On April 30, 2018, a federal district court issued a long-anticipated ruling on Philadelphia’s salary history ban. The ban, scheduled to take effect May 23, 2017, has two parts: (1) the “Inquiry Provision,” precluding employers from inquiring about a prospective hire’s wage history; and (2) the “Reliance Provision,” prohibiting employers from relying on the wage history of a new employee in determining the employee’s pay, unless the employee “knowingly and willingly disclosed his or her wage history to the employer.”
On April 11, 2018, the New York City Council passed a package of legislation referred to as the “Stop Sexual Harassment in NYC Act,” (“NYC Act”) which, if passed, will require covered New York City employers to, among other things, provide annual anti-sexual harassment training to employees. The legislation now awaits the signature of New York City Mayor Bill de Blasio. New York City follows on the heels of New York Governor Andrew Cuomo’s signing the Budget Bill, which contained a new state law (“NY State Act”) requiring covered employers to provide annual anti-sexual harassment training to employees as of October 9, 2018. For a more comprehensive discussion about the NYC Act and NY State Act, please see our LaborSphere blog. Also, employers will be receiving more guidance regarding what constitutes compliant training programs as New York City’s legislation, if passed, directs the NYC Human Rights Commission to develop an online interactive module that can be used to satisfy the law’s requirements. In New York, the Commissioner of Labor and the New York State Human Rights Division are jointly compelled to create a model sexual harassment training program.