On January 1, 2018, Iceland’s amended Equal Pay Standard took effect, the latest in a serious of measures seeking to address the persistence of national gender wage gaps. The law requires employers with 25 or more employees to obtain a government certification every three years verifying a company’s compliance with equal pay requirements. Failure to attain certification exposes employers to liability of up to nearly $500 in penalties per day. Employers with an observed pay differential can comply by raising the salaries of employees to eliminate the differential. READ MORE
California continues to pace the nation in terms of equal pay protections, most recently through Governor Jerry Brown’s signing of Assembly Bill 168 on October 12, 2017. Effective January 1, 2018, California’s new law prohibits employers from asking job candidates about their prior salary, although it allows employers to consider prior salary information if a job candidate voluntarily discloses it. California’s law further contains an unprecedented provision that requires employers to disclose to job candidates the “pay scale” for the position at issue if the job candidate requests it. Governor Brown also signed Assembly Bill 46, which clarifies that the state’s equal pay laws apply to both private and public employers. READ MORE
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
On August 1, 2016, Governor Charlie Baker signed into law a pay equity bill which the Massachusetts Legislature passed by unanimous vote on July 23, 2016. The pay equity act is one of the strongest and most unique in the nation. Chief among the unique features is the prohibition on the use of prior salary in setting compensation and an affirmative defense for employers who conduct pay audits. The legislation differs from the federal Equal Pay Act (EPA) and other recent state pay equity laws, including California and Maryland, in several ways.
Comparable Work Presents a Broader Standard
The EPA requires that men and women in the same workplace receive equal pay for “equal work.” “Equal work” means their jobs need not be identical, but “substantially equal.” The newly passed Massachusetts legislation only requires “comparable work,” meaning work that is substantially similar in that it requires substantially similar skill, effort and responsibility and is performed under similar working conditions. Thus, the legislation will give employees a larger pool of “comparator jobs” to point to should they feel underpaid in relation to their gender opposites. In fact, the “comparable work” standard appears to be similar to the broader-based standard used in pay-disparity claims under Title VII, except that Title VII also requires proof of intent. Recent Maryland and California laws also expand the pool of comparators. READ MORE
As we noted in a previous post, Maryland Governor Larry Hogan signed the Equal Pay for Equal Work Act of 2016 (“Equal Pay Act”) into law on May 19, 2016 (effective on October 1, 2016). With the passage of this new law, Maryland joins New York and California in the category of states with some of the country’s most expansive equal pay protections. Included below are our updated maps of states with equal pay protections and of states with equal pay protections and states with pending equal pay legislation.
Last week, Maryland became the most recent state to expand its equal pay protections, when Governor Larry Hogan signed the Equal Pay for Equal Work Act of 2016 (“Equal Pay Act”) into law. Maryland joins states like New York and California, which have some of the country’s most expansive equal pay protections. Unlike New York and California, Maryland’s law was signed by a Republican governor, which establishes that equal pay efforts have crossed party lines. The new law introduces two new features into the equal pay fray: gender identity and “work of comparable character.”