Equal Pay Bill Goes to Murphy's Desk
The bill, A-1/S-104, passed both houses of the Legislature with only two negative votes being cast.
March 26, 2018 at 07:16 PM
5 minute read
New Jersey lawmakers on Monday gave final legislative approval to a bill aimed at policing discriminatory pay practices in the workplace.
A-1/S-104 passed both houses of the Legislature with only two negative votes being cast. The legislation was sponsored by Sen. Loretta Weinberg, D-Bergen. An identical version was sponsored by Assemblywoman Pamela Lampitt, D-Camden.
“Women in every state and in nearly every occupation experience the gender pay gap,” said Lampitt in a statement. “Over their lifetime, this can have a significant impact on their financial security. Though the gap is gradually closing, it's doing so far too slowly and many women still do not receive commensurate compensation for their work. Stricter measures to ensure parity in the workplace are clearly needed.”
Although Democratic Gov. Phil Murphy has repeatedly signaled his support for equal pay legislation, he has yet to formally comment on the measure.
Former Gov. Chris Christie, a Republican, had vetoed identical legislation, most recently in 2016. That conditional veto marked the third time Christie returned the legislation, deeming its remediation terms too broad.
Assemblymen Michael Patrick Carroll, R-Morris, and Jay Webber, R-Union, voted against the bill on Monday.
During the Christie administration, legislators repeatedly passed the bill, modeled after the federal Lilly Ledbetter Fair Pay Act of 2009, which made it easier to bring pay-discrimination suits by allowing the statute of limitations to reset with the issuance of every offending paycheck.
An amended version of the proposed state law would cap at six years the period of time for which a plaintiff could seek damages. The plaintiff would be allowed to seek treble damages, however, under the amended version.
Christie, in his 2016 conditional-veto message, said damages should be capped at two years.
“As I expressed previously when a similar provision reached my desk, unlimited back pay for wage discrimination clearly departs from well-established law,” Christie said at the time. “There is no reason for our law to go beyond the Lilly Ledbetter Act; the sponsors should not object to matching the federal law they so often cite as a model.”
Christie also urged lawmakers to remove language allowing for treble damages.
The legislation would:
- Prohibit unequal pay for “substantially similar” work, under the Law Against Discrimination. The legislation would make it unlawful for an employer to pay a rate of compensation, including benefits, to an employee of one sex less than the rate paid to an employee of the other sex for substantially similar work when viewed as a composite of skill, effort and responsibility, unless specific conditions apply.
- Require a different rate of compensation be justified by factors other than sex. The bill would permit an employer to pay a different rate of compensation if the employer demonstrates that the differential is made due to a seniority system, 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. The bill would require 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 on legitimate business necessities.
- Restart the statute of limitations for each instance of discrimination. The bill would mandate that a discriminatory compensation decision or other employment practice that is unlawful under the LAD occurs each time that compensation is paid in furtherance of that discriminatory decision or practice—effectively making each paycheck another instance of discrimination, reflecting the state Supreme Court's interpretation of wage discrimination under the LAD as well as language in the Ledbetter Act. In addition, the bill would provide that liability shall accrue and an aggrieved person 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. This provision would be stronger than the federal Ledbetter act, which has a two-year cap on back pay.
- Prohibit employer retaliation against an employee for disclosing or discussing compensation. Employers would not be allowed not take reprisals against an employee for requesting, disclosing or discussing information about the job title, occupational category, and rate of compensation of any employees or former employees. It would prohibit an employer from requiring an employee or prospective employee to forgo rights to make, discuss, or request those disclosures.
- Require transparency in state contracting. The bill requires contractors to provide information on gender, race, job title, occupational category and compensation, and to report certain changes during the course of the contract; information must be filed with the labor commissioner and the Division of Civil Rights. The bill requires disclosure to employees and their authorized representatives on request.
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