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:
This week, three female associates at Morrison & Foerster (“MoFo”) filed a nine-count gender, pregnancy, and maternity (“sex-plus”) discrimination class and collective action against their employer in the Northern District of California. The putative class includes all female attorneys at MoFo and other national and California subclasses of female attorneys who have been or will be employed by MoFo and who have been or will be pregnant, have children, and/or take maternity leave.
Governor Phil Murphy recently made good on his campaign promise to make equal pay a top priority in New Jersey. On April 24, 2018, Governor Murphy signed into law the Diane B. Allen Equal Pay Act (the “Act”), which amends the New Jersey Law Against Discrimination (“NJLAD”). The Act was passed by the New Jersey Legislature on March 27, 2018, and takes effect on July 1, 2018.
The Act is being heralded as one of the most expansive equal pay laws in the country, and impacts hiring practices, compensation practices, employee arbitration agreements and how HR must respond to employee demands for information regarding their co-workers’ compensation.
Continue reading “New Jersey Enacts Comprehensive Equal Pay Law – What Employers Need to Know”
Just in time for Equal Pay Day (April 10), in its en banc opinion in Rizo v. Yovino, Fresno County Superintendent of Schools, the Ninth Circuit held earlier this week that prior salary alone, or in combination with other factors, cannot justify a wage differential between male and female employees under the Equal Pay Act (“EPA”). In reaching this holding, the Ninth Circuit affirmed the district court’s denial of summary judgment to Fresno County and overruled a prior Ninth Circuit decision, Kouba v. Allstate Insurance Co., 691 F. 2d 873 (9th Cir. 1982). The court in Rizo also took a view of available EPA affirmative defenses which conflicts with the views held by other circuits and the EEOC.