Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

New NJ Equal Pay Laws Will Impact Monmouth Employers

Author: Scarinci Hollenbeck, LLC

Date: March 14, 2016

Key Contacts

Back

Amendments to NJ Equal Pay Law Will Impact Monmouth County Employers

Proposed changes to New Jersey’s Equal Pay Law are currently moving through the Legislature. If they become law, Monmouth County employers will face additional liability under the New Jersey Law Against Discrimination (LAD).

New NJ Equal Pay Laws Will Impact Monmouth Employers

New Jersey’s Equal Pay Law currently bans discrimination in the rate or method of payment of wages to an employee because of his or her sex. Senate Bill 992 aims to increase the protections against pay discrimination and close the wage gap between men and women. Below are several key provisions of the proposed amendment, which has cleared the Senate and is currently moving through the Assembly.

Pay Differentials

The bill would make it an unlawful employment practice in New Jersey for an employer to discriminate between employees on the basis of sex by paying a rate of compensation, including benefits, to employees of one sex less than the rate paid to employees of the other sex for substantially similar work, when viewed as a composite of skill, effort and responsibility. The proposed legislation also prevents employers from reducing the rate of compensation of any employee in order to comply with the amended law.

When pay disparities do occur, the burden would be on the employer to demonstrate that the differential is made pursuant to a seniority system or a merit system, or is based on legitimate, bona fide factors other than sex, such as training, education, experience, or the quantity or quality of production. Employers must also show that each factor is applied reasonably, that one or more of the factors account for the entire wage differential, and that the factor or factors do not perpetuate a sex-based differential in compensation, are job-related and based upon legitimate business necessities.

Continuing Violations

Under the proposed measure, a discriminatory compensation decision occurs each time the employee is paid. Accordingly, the provision restarts the applicable statute of limitations governing discriminatory compensation claims under the LAD, effectively making each paycheck a new or continuing violation.  In addition, the proposed amendment provides that aggrieved workers may obtain relief for back pay for the entire period of time in which the violation has been continuous, if the violation continues to occur within the statute of limitations. The bill also makes it a violation of the LAD for an employer to require an employee to agree to any reduction of any applicable statute of limitation.

Retaliation

Finally, Senate Bill 992 also amends the LAD to prohibit an employer from retaliating against an employee for disclosing information about job titles, occupational categories, rates of compensation, gender, race, ethnicity, military status, or national origin of employees or former employees.  It also prohibits an employer from requiring, as a condition of employment, any employee or prospective employee to waive rights under the law.

Steps to Boost Compliance

On the federal level, pay disparity is also hot topic in employment law. As recently discussed on this blog, the Equal Employment Opportunity Commission will begin requiring companies to provide pay data on EEO-1 Forms in 2017. Given the increased scrutiny, Monmouth County employers should review their wage polices and procedures to identify any practices that could be construed as discriminatory. Employers should also verify that all wage decisions are documented in writing and based on a legitimate, business necessity.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Failing to Comply With NJ Rent Control Exemption May Prove Costly post image

Failing to Comply With NJ Rent Control Exemption May Prove Costly

What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing.  A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]

Author: Patrick T. Conlon

Link to post with title - "Failing to Comply With NJ Rent Control Exemption May Prove Costly"
Crypto Securities Law: When Tokens Become Investment Contracts post image

Crypto Securities Law: When Tokens Become Investment Contracts

The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Securities Law: When Tokens Become Investment Contracts"
The Due Diligence Process for NY Condominiums and Cooperatives post image

The Due Diligence Process for NY Condominiums and Cooperatives

While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]

Author: Jesse M. Dimitro

Link to post with title - "The Due Diligence Process for NY Condominiums and Cooperatives"
Smart Contract Legal Issues: Drafting Agreements for Blockchain post image

Smart Contract Legal Issues: Drafting Agreements for Blockchain

Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]

Author: Bryce S. Robins

Link to post with title - "Smart Contract Legal Issues: Drafting Agreements for Blockchain"
Are Stay Interviews the Key to Retaining Top Talent? post image

Are Stay Interviews the Key to Retaining Top Talent?

Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]

Author: Angela A. Turiano

Link to post with title - "Are Stay Interviews the Key to Retaining Top Talent?"
Why Secured Transactions Are Important post image

Why Secured Transactions Are Important

Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]

Author: Dan Brecher

Link to post with title - "Why Secured Transactions Are Important"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!