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Author: Scarinci Hollenbeck, LLC
Date: January 6, 2016
The Firm
201-896-4100 info@sh-law.comThis fall, New York Governor Andrew Cuomo signed a series of bills into law that will dramatically increase the equal pay and gender discrimination protections for female workers in the state. For New York employers, it is important to be aware that many of the changes under these laws become effective in the New Year. Further, it should be clear that Employers would be well advised to engage in a careful analysis of its equal pay practices and other policies to insure that all new requirements are addressed.
New York Labor Law (NYLL) § 194 will undergo the most substantive changes under the package of equal pay bills. The statute previously allowed employee pay differentials based on “any other factor other than sex.” Under the amendment, differentials may be based upon “a bona fide factor other than sex, such as education, training, or experience.” Employers must be prepared to affirmatively demonstrate that any such differential is job related and “consistent with business necessity.”
In addition, employers will not be able to rely on the “factor other than sex” defense if the employee can prove that:
Changes to the NYLL also address confidentiality provisions governing wages. Under the revised New York employment law, no employer may prohibit “an employee from inquiring about, discussing, or disclosing the wages of such employee or another employee.” However, businesses may place reasonable “limitations on the time, place and manner for inquiries about, discussion of, or the disclosure of wages.”
The equal pay revisions also make clear that equal pay analysis must include work in different locations by expanding the definition of “same establishment” to include “workplaces located in the same geographical region, no larger than a county.” Lastly, the amendments increase the cost of willfully violating the equal pay law by increasing liquidated damages liability to 300 percent of the total amount of wages owed.
Below is a brief review of several other key legal changes signed into law:
The new laws become effective on January 19, 2016. Accordingly, New York employers should review their policies and procedures to verify that they are in compliance and make any necessary changes as soon as possible.
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