New Jersey has now joined the group of states that in recent years have amended their equal pay laws to go well beyond the requirements of the federal Equal Pay Act. The New Jersey Equal Pay Act (S. 104), which received overwhelming bipartisan approval by the state legislature on March 27 and awaits the Governor’s expected signature, is scheduled to go into effect on July 1, 2018.
Among other things, S. 104 expands the class of protected individuals (beyond just sex) by including all individuals who fall within a protected class under state law – a long list in New Jersey. The law also expands the territorial reach of equal pay requirements by allowing pay comparisons based on the wage rates in all of an employer’s operations or facilities, tightens up the “any other factor” catchall defense, increases the penalties for violations, extends the statute of limitations for bringing a claim, and requires state service contractors to provide a report to the Commissioner of Labor and Workforce Development showing the compensation and hours worked by employees categorized by gender, race, ethnicity, and job category.
For multi-state employers that operate in New Jersey, it means determining how to comply with yet another state law with requirements that differ dramatically from federal law.
A copy of the New Jersey Equal Pay Act is available here.
Members of the Center for Workplace Compliance (CWC) can read more here.