Last week, New Jersey Governor Phil Murphy signed the Diane B. Allen Equal Pay Act in an attempt to close the pay gap for protected individuals under the New Jersey Law Against Discrimination ("LAD"). New Jersey employers have until July 1, 2018 to comply with the new law. Generally, the new Equal Pay Act prohibits employers from paying employees who are members of a protected class under the LAD a less rate of compensation than employees who are not members of the protected class for substantially similar work. We posted a blog discussing the law and its requirements in detail, which can be found here.
The Equal Pay Act goes into effect on July 1, 2018 and one way employers can prepare is by conducting an audit of their pay practices and salary information. Employers should evaluate their current systems for internal equity, systems for employees entering their companies, and systems for issuing raises and advancements. It should be noted that employers cannot lower salaries to be compliant with the law. Contact us at Saul Ewing Arnstein & Lehr with any questions on the new law and its requirements, or to discuss conducting a pay audit for your business.