Search Our Articles

      New Jersey Law, Employers

      AdobeStock_88075401New Jersey Gov. Phil Murphy announced Tuesday that he would sign new equal pay legislation, making it the most comprehensive in the nation. Effective July 1, 2018, this law will make it illegal to offer unequal pay to employees for substantially similar work as long as, skill, effort, and responsibilities, are weighed.Here’s what you need to know.

      Current pay legislation in New Jersey

      Current NJ legislation prohibits employers from discriminating the rate or method of payment to any employee because of:

           - Race
           - Creed
           - Color
           - National origin
           - Nationality
           - Ancestry
           - Age
           - Sex (including pregnancy and sexual harassment)
           - Marital status, domestic partnership or civil union status
           - Sexual orientation and gender identity
           - Disabilities

      While workers have already had some protections under the current rule, the new law amends legislation by increasing damages owed for violations. If the court determines an employee's pay suffered discrimination, they will now receive three times the amount of pay differential.

      What New Jersey employers need to know about New Jersey’s Equal Pay Law

      Employers aren’t required to pay everyone the same, as long as the following factors apply: experience, education, quantity and quality of production. Employers who pay one employee more than another will be required to demonstrate how their experience or education makes that person’s wages fair.

      Also, NJ.com explains that employers are prohibited from cutting wages of higher-paid staff to make salaries comparable.

      Employees with evidence of wage discrimination can now receive back pay up to six years.

      The new law also prohibits employers from retaliating against workers who discuss their compensation with current or previous co-workers, a lawyer, or any government agency. If an employee succeeds on a claim that they were required to sign a waiver that they wouldn’t disclose this type of information as a condition of employment, they would be eligible for the increased damages.

      What can be done now? The Society for Human Resources Management (SHRM) suggests that it’s a good idea for employers to be proactive and examine existing pay policies to ensure compliance.

      For more comprehensive information, you can read the full bill here.

      Disclaimer: The information provided is meant to be a guide and provide general information on the related topic. Articles are not intended to be a comprehensive summary of laws applicable to your situation. For any additional questions regarding this, or any other material published here, please contact your accountant.

      Interested in meeting with an accountant?...

      Request a Free Consultation

      Tagged: New Jersey Law, Employers

      Share

      Comments (0)