New York Strengthens Pay Equity with Labor Law Section 194 Amendment

An amendment to New York’s equal pay law took effect January 19, 2016.

As described by New York Labor & Employment Law Report, “The law amends Labor Law Section 194, which prohibits pay differentials based on gender in jobs requiring ‘equal skill, effort and responsibility’ which are ’performed under similar working conditions’.”

The amendment strengthens preexisting law in various ways. According to a New York State website press release:

“This bill (S. 1 / A. 6075) would strengthen New York State law to truly prohibit employers from paying women less than men for performing the same work. The bill eliminates a loophole in the current law that allows employers to prohibit employees from discussing their salaries under threat of termination or suspension. Specifically, the bill would allow employees to discuss their wages with each other. Further, the bill increases the amount of damages available to an employee if an employer willfully violates the law.”

The amendment also closes a loophole that allowed employers to defend a pay discrimination claim by “any other factor other than sex” and now requires employers to defend a pay discrimination claim with a “bona fide factor other than sex, such as education, training, or experience.”

Employers should evaluate their pay structure to ensure they are in compliance with this amendment. They should review their written policies to ensure that they do not restrict employees from discussing their salaries. Relevant legislation can be found here.

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