ARTICLE
18 October 2019

New York Pay Equity Law Expanded And Statewide Salary History Ban Enacted

B
BakerHostetler

Contributor

BakerHostetler logo
Recognized as one of the top firms for client service, BakerHostetler is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Labor and Employment, Intellectual Property, Litigation, and Tax — the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. Visit bakerlaw.com
As we reported in our summer newsletter, the New York Legislature passed legislation to expand the pay equity law;
United States Employment and HR

As we reported in our summer newsletter, the New York Legislature passed legislation to expand the pay equity law; the bill was signed into law and, as a result, effective Oct. 8, the New York Labor Law will prohibit pay inequity not just based on sex but based on any protected class protected by the New York State Human Rights Law. The amendment also expands the law by requiring equal pay not just for equal work but for "substantially similarly work, when viewed as a composite of skill, effort, and responsibility, and performed of similarly working conditions." These amendments will make it far easier for an employee to show pay inequity and far more difficult for employers to monitor pay equity, and they are consistent with the pay equity law passed last year in New Jersey.

Employers should immediately begin conducting privileged audits of salaries and related job duties to ensure that all employees who conduct substantially similar work are paid equal amounts.

Likewise, the New York state salary history ban we previously reported on in our summer newsletter was signed into law. As a result, employers are prohibited from asking about or relying on salary history for determining salary amounts for a new applicant or promoted employee, unless the employee voluntarily discloses his or her previous pay. The bill also prohibits employers from retaliating against an applicant or employee on the basis of his or her disclosed salary and his or her refusal to disclose salary history. If, however, an employee voluntarily discloses salary history after an offer with compensation has been made in an attempt to negotiate a higher salary, an employer may confirm such salary history. At this point, it seems unlikely that an employer would be permitted to rely on information volunteered by an applicant prior to an offer with compensation. This is different from the New York City law and should be emphasized to those making hiring and compensation decisions.

All employers across the state will have to comply with this new law. As a result, employers will need to train all interviewing staff to refrain from asking about previous salaries and remove all inquiries from any application documents.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More