Nearly three years ago, New Jersey enacted the historic Diane B. Allen Equal Pay Act (EPA), amending Title 34 regarding Wage Discrimination and the New Jersey Law Against Discrimination (LAD). N.J.S.A. 34:11-56.1-56.14; N.J.S.A. 10:5-1, et seq. Some interpretative sources now exist that are helpful to aid in compliance. In the coming years, New Jersey state and federal courts will undoubtedly provide additional clarity.

Breadth and Scope of EPA

Unique in breadth and scope, the EPA applies to virtually all public and private employers in New Jersey regardless of size or industry. N.J.S.A. 10:5-5. Additionally, its protections extend to all protected classes under the LAD (i.e., sex, race, creed, color, nation origin, nationality, ancestry, age, marital status, sexual orientation, gender identity, disability, etc.), not just sex-based equal pay claims. N.J.S.A. 10:5-12(t). The EPA prohibits an employer from paying employees who are members of a protected class at a rate of compensation, including benefits, that is less than the rate paid to employees who are not members of the protected class for "substantially similar work when viewed as a composite of skill, effort, and responsibility." Id.  The "substantially similar work" requirement is broader than the "equal work" standard for sex-based discrimination under the federal Equal Pay Act. 29 U.S.C.A. §206(d)(1).