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
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What? post image

You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?

Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]

Author: George McGowan

Link to post with title - "You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?"
Why Every Business Should Conduct an Annual Insurance Coverage Review post image

Why Every Business Should Conduct an Annual Insurance Coverage Review

Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]

Author: George McGowan

Link to post with title - "Why Every Business Should Conduct an Annual Insurance Coverage Review"
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To) post image

Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)

Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]

Author: George McGowan

Link to post with title - "Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)"
How to Effectively Use Contracts to Manage Risk post image

How to Effectively Use Contracts to Manage Risk

Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]

Author: George McGowan

Link to post with title - "How to Effectively Use Contracts to Manage Risk"
Understanding Portability for Estate and Gift Tax post image

Understanding Portability for Estate and Gift Tax

Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]

Author: Marc J. Comer

Link to post with title - "Understanding Portability for Estate and Gift Tax"
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool post image

Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool

For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]

Author: Marc J. Comer

Link to post with title - "Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool"

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.
“If you would like to submit a file, please email it directly to info@sh-law.com.

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