Massachusetts

Is it Safe to Wade into the “Safe Harbor” Waters in Recent Pay Laws?

A growing number of state and local governments have passed equal pay laws in recent years. These statutes and ordinances have varied in their specific content and have created a patchwork of legal requirements vexing employers who are attempting to comply. Two states have added wrinkles to this patchwork. While many of the obligations have favored employees, Massachusetts and Oregon have attempted to tip the scales to employers by creating “safe harbor” provisions aimed at providing some form of relief for employers who perform voluntary pay audits and correct any adverse findings through “safe harbor” provisions. These provisions, however, raise significant questions that employers must consider before concluding that they are fully protected. READ MORE

Massachusetts Signs Into Law Far Reaching Pay Equity Bill

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