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About The Pay Equity Law

New York has a Pay Equity law that was designed to help prevent wage discrimination. Legislators updated it in 2020. The enhanced law stipulates that people who do substantially similar work under substantially similar conditions must be paid comparable wages. It notes that factors to consider when determining what is “substantially similar” include skill, effort and level of responsibility.

The revised law is intended to help eliminate wage discrimination based on gender or other protected factors such as race, marital status and age. There are some exceptions. Employers may pay one person more than another due to on an internal policy that recognizes:

• Seniority.
• Quality or quantity of production.
• Experience.
• Other bona fide factors.

Employers may also pay different wages to accommodate for the cost of living. Before creating an exception, they must be able to show it is consistent with business necessities.

Salary History Ban

To help prevent wage discrimination, New York employers are prohibited from asking applicants how much they earn. Prior to this ban, organizations could inquire about a candidate’s salary and use that to determine what level of compensation to provide. When that happens, a person who makes less than they should due to their gender or other factors is likely to be offered less than colleagues who do similar work.

The Pay Equity Law also applies to promotions. It specifies employers cannot refuse to consider or promote a current employee because of the person’s salary.

The New York Salary History Ban FAQ

Organizations in New York can visit the state’s website for answers to important questions including:

• May an employer ask someone other than the employee or applicant about the employee or applicant’s prior salary history?
• Is an employer required to provide the pay scale or salary range for a position?
• May an employer inquire about salary history information required by Federal, State or Local Law?
• Does this law apply to New York City employers or to public employers?
• Does this law cover independent contractors?
• Does this law apply to jobs in New York State even if the employer is not based in New York State?

To learn more, visit the FAQ.

What Employers Should Know

Employers that operate in New York should be aware of and compliant with the Pay Equity Law. If an organization is accused of not complying, a civil court action could be brought against them. We recommend consulting with legal counsel to ensure you are following applicable federal, state and local laws throughout your hiring process.

Running Background Checks For Employment

When your organization is hiring, promoting or making other business decisions, it is critical to run comprehensive background checks. These reports contain information that helps you identify qualified candidates and build strong teams. They can also include details about serious criminal records that might indicate a candidate poses an undue risk.

The team at Backgrounds Online is highly trained and ready to build customized background check packages for any employment purpose. Contact us for expert assistance Monday through Friday from 5am to 6pm PT.