The California legislature is poised to continue its trailblazing streak of equal pay legislation with a new pay gap reporting bill. If approved and signed by Governor Jerry Brown, AB 1209 would add Section 2810.7 to the California Labor Code and require certain large employers to report pay gap statistics on an annual basis beginning in 2019. READ MORE
On June 1, 2017, Oregon Governor Kate Brown signed into law the Oregon Equal Pay Act of 2017 (House Bill 2005). Although pay equity legislation has been proposed or passed in a number of jurisdictions throughout the country, Oregon’s new law merits special attention. The obligations it imposes on employers seeking to justify pay differentials are arguably among the strictest in the nation, but it also affords employers some key protections and potential safe harbors. Given the focus by government agencies and plaintiffs’ attorneys on pay equity in the technology sector out West, companies seeking to maintain or expand in the so-called “Silicon Forest” should pay special attention to the provisions of this new law.
We took a deep dive into the background and history of the legislation, and share some key observations about what it says—and doesn’t say—here. READ MORE
The President released his budget which includes separate proposals for various government agencies. The budget proposal for the Office of Federal Contract Compliance Programs (OFCCP), which oversees affirmative action and non-discrimination requirements for federal contractors, includes a plan for the government to fold the agency into the Equal Employment Opportunity Commission (EEOC). The proposal tasks OFCCP with working collaboratively to develop and implement a plan to complete the merger by September 30, 2018. The proposal touts increased efficiencies in the form of consolidated government EEO oversight and enforcement “under one roof.” Perhaps to facilitate this move to a common agency, the administration has proposed slashing OFCCP’s budget by over $17 million to $88 million for FY 2018 and reducing staff by 131 positions. This would be accomplished by closing field office locations and other cost savings measures.
The proposed merger raises many questions including: READ MORE
As schools across the country prepare for summer break, the Ninth Circuit overturned a lower court decision against the Fresno County public school district which had found that its pay practices were unlawful. Notably, the Ninth Circuit held that an employer may rely on prior salary as an affirmative defense to claims under the federal Equal Pay Act (“EPA”) if “it show[s] that the factor ‘effectuate[s] some business policy’ and that the employer ‘use[s] the factor reasonably in light of the employer’s stated purpose as well as other practices.’” READ MORE
On April 5, 2017, the New York City Council passed an amendment to the New York City Human Rights Law prohibiting employers or their agents from inquiring about the salary history of an applicant. The law also restricts an employer’s ability to rely upon that salary history in determining the salary, benefits or other compensation during the hiring process “including the negotiation of a contract.” The term “salary history” is defined to include current or prior wages, benefits or other compensation, but does not include “objective measures of the applicant’s productivity such as revenue, sales or other production reports.”
There are several notable exceptions to the law. READ MORE
In February this year, draft gender pay gap reporting regulations were published and comments were invited. There then followed an extended period while we waited for the final regulations to be published and the (many) consultation questions to be addressed. One could speculate about the chaos caused by Brexit [in Parliament] that caused this extended waiting period, but we won’t. The main thing is that the final regulations are at last here and (subject to parliamentary approval) will come into force on April 6, 2017. READ MORE
Just less than a year ago, California adopted the Fair Pay Act (“FPA”), which took effect on January 1, 2016 and created some of the strongest equal pay protections in the nation. On September 30, 2016, Governor Jerry Brown signed two bills that expand the law even further.
Yesterday, the EEOC announced that it had finalized a regulation that will increase disclosure requirements regarding employee compensation for thousands of businesses. The new rule, which we’ve blogged about previously, requires all businesses with 100 or more workers to submit pay data by gender, race and ethnicity on their EEO-1 forms. Specifically, employers will now need to provide:
The Government Accounting Office recently released a report on the DOL’s Office of Federal Contract Compliance Programs (OFCCP). The report notes several concerns related to the Agency’s contractor selection process, investigator training and compliance assistance efforts. Further, the report details many of the concerns voiced by contractors regarding inconsistency in investigations and contractors’ overall distrust of the Agency in compliance assistance efforts. OFCCP received a draft of the report and, in its response to the draft report, agreed with some of the recommendations related to changes in the selection process and better monitoring of contactors for AAP compliance. Further, the Agency noted its efforts to improve training and compliance assistance.
In an emerging trend, law firms have found themselves the targets of recent lawsuits alleging gender discrimination against female partners. Most recently, Kerrie Campbell, a litigation partner at Chadbourne & Parke’s Washington, D.C. office filed a $100 million proposed class action lawsuit on behalf of all female partners at the firm. She alleges that Chadbourne’s male-dominated culture leads to unequal compensation for women. The lawsuit, filed on August 31, 2016, in federal district court in New York, seeks relief under Title VII, the Federal Equal Pay Act, and the District of Columbia Human Rights Act.