On May 12, 2022, New York City Mayor Eric Adams signed Introduction Number (Int. No.) 134-A into law, just days before the current salary disclosure law was set to take effect. New York City’s salary disclosure law will now take effect on November 1, 2022.
On May 12, 2022, New York City Mayor Eric Adams will hold a hearing on New York City’s salary disclosure bill, Introduction Number 134-A. The bill, which the New York City Council passed on April 28, 2022, would revise Local Law 32, New York City’s previously enacted salary disclosure law.
On April 28, 2022, the New York City Council passed Int. No. 134-A, which revises Local Law 32, New York City’s previously enacted salary disclosure law. In order to become law, the bill must be signed by New York City Mayor Eric Adams. While the mayor has thirty days to consider the bill, timing is key as the current salary disclosure law is set to take effect on May 15, 2022.
International Women’s Day, which draws attention to women’s rights and gender equality worldwide, has been celebrated since 1911. In order to counteract any inequalities that women may face in the workforce, the German government enacted a number of important employment laws and amendments in recent years.
On March 24, 2022, the New York City Council took up a new bill, Int. No. 134, which proposes changes to the local law enacted on January 15, 2022, regarding transparent pay practices. The local law, which is currently set to go into effect on May 15, 2022, makes it an “unlawful discriminatory practice” for employers with four or more employees to post job advertisements, internal promotions, or transfer opportunities without setting forth the anticipated salary ranges.
On March 30, 2022, Washington Governor Jay Inslee signed into law Senate Bill (SB) 5761, a measure that requires employers to affirmatively disclose in each job posting open to applicants the salary range or wage scale to be offered, as well as a general description of all benefits and other compensation for the position.
On March 22, 2022, the New York City Commission on Human Rights (NYCCHR) published long-awaited guidance regarding New York City’s salary disclosure law, which requires employers to post the anticipated “minimum and maximum salary” in job advertisements. The law, which was passed on December 15, 2021, and takes effect on May 15, 2022, requires employers to include a “good faith” salary range in any external or internal job posting, as well as promotion or transfer opportunity.
We had been holding off on publishing an update on the Illinois Equal Pay Act requirements in hopes that the State of Illinois would publish its proposed rules implementing the law. Those rules have not yet come. Accordingly, we are publishing this interim update. When the state announces its rules, we will issue further information.
On March 21, 2022, the Office of Federal Contract Compliance Programs (OFCCP) announced that it would publish a notice of proposed rulemaking (NPRM), entitled “Pre-enforcement Notice and Conciliation Procedures,” in the Federal Register on March 22, 2022. OFCCP’s proposal would modify a 2020 final rule that had codified various procedures to resolve potential employment discrimination.
While the Paycheck Fairness Act (S. 205) is stalled in the U.S. Senate, the White House has called for action on issues relating to pay equity. On March 15, 2022, which was women’s “Equal Pay Day” for 2022 in the United States, President Biden issued an executive order “promoting pay equity and transparency” within the federal workforce and among federal contractors.
In the first internal agency directive during Jenny Yang’s tenure as director, the Office of Federal Contract Compliance Programs (OFCCP) issued Directive 2022-01, entitled “Pay Equity Audits” on March 15, 2021.
Oregon employers may want to be aware that on March 7, 2022, Governor Kate Brown signed into law amendments to the state’s Equal Pay Act detailed in Senate Bill (SB) 1514. As a result, Oregon employers may offer vaccine incentives, hiring bonuses, and retention bonuses until 180 days after the expiration of the COVID-19 state of emergency without running afoul of the Equal Pay Act.
The Oregon Legislative Assembly recently passed Senate Bill (SB) 1514, extending the expiration date of temporary amendments to Oregon’s Equal Pay Act. The act prohibits employers from “discriminat[ing] between employees on the basis of a protected class in the payment of wages or other compensation for work of a comparable character,” unless the wage differential is based on certain bona fide factors.
The California Department of Fair Employment and Housing (DFEH) posted updates to its California Pay Data Reporting Portal User Guide and California Pay Data Reporting: Frequently Asked Questions (FAQ) guidance for the 2021 reporting year on its pay data reporting landing page on January 31, 2022. The DFEH has set the deadline for filing 2021 pay data reports as April 1, 2022.
Some employers have a practice of periodically conducting statistical analyses of employee compensation, under attorney-client privilege, to identify potential areas of risk related to pay equity concerns. These analyses are usually focused on gender and race or national origin. Through these statistical analyses, employees are placed into comparator groups and the compensation of the employees in those groups is analyzed for differences that remain after controlling for relevant factors available in the data set. Such factors may include data points such as job title, tenure with the company, time in position, location/market, and performance ratings. Once the analysis has controlled for the available factors, the statistical model will flag those comparator groups where the pay differences are statistically significant and adverse to a particular demographic.
The California Department of Fair Employment and Housing (DFEH) recently posted an announcement on its pay data reporting landing page stating the deadline for filing 2021 pay data reports is April 1, 2022. This is different from last year’s deadline of March 31, 2021, and earlier statements by the DFEH indicating that the filing deadline would be March 31 going forward after last year’s inaugural filing cycle. The announcement also provides notice that new versions of the filing portal, user guide, and template (a spreadsheet document including a blank pay data upload report, instructions, and two sample reports), and other resources will be available on February 1, 2022.
On December 15, 2021, the New York City Council passed a bill that would require New York City employers with four or more employees (including independent contractors) to disclose minimum and maximum salary information in job postings. The bill, which has not yet been signed by the mayor, would amend the New York City Human Rights Law (NYCHRL) and go into effect 120 days after it is signed into law.
At long last, on August 31, 2021, the Office of Management and Budget (OMB) approved the new system that the Office of Federal Contract Compliance Programs (OFCCP) developed for federal contractors to submit affirmative action programs (AAPs). The Affirmative Action Program Verification Interface (AAP-VI) is designed to provide covered federal contractors a method of entering, tracking, and submitting AAPs for review by OFCCP.
On August 18, 2021, the U.S. Equal Employment Opportunity Commission (EEOC) announced that the prior August 23, 2021, EEO-1 filing deadline for the 2019 and 2020 EEO-1 reports has been moved to October 25, 2021. The EEOC cited the “continuing impact of the pandemic on business operations” as the justification for this two-month extension of the earlier deadline.
Rhode Island Governor Daniel McKee signed pay equity legislation (H 5261A, S 0270A) that will go into effect on January 1, 2023. The new legislation amends Rhode Island’s existing pay equity law and contains the following key provisions.
The U.S. Equal Employment Opportunity Commission (EEOC) recently announced that it is loosening the requirement on companies to provide notice to the federal agency of acquisitions, mergers, and spinoffs. By way of background, in addition to requiring the submission and certification of two years of EEO-1 reports, the EEOC had created a new filing platform for the 2019 and 2020 EEO-1 filings, which are due by August 23, 2021. The transition to the new platform and the requirement to file two years of EEO-1 reports has resulted in a rocky EEO-1 filing cycle. As a continued sign of these difficulties, the EEOC implemented a major change to the procedure for handling mergers, acquisitions, and spinoffs for EEO-1 reporting.
The Pay Equity Act, which Canada’s federal government passed in 2018, is going into effect on August 31, 2021. The act aims to address the systemic gender-based discrimination faced by women in federally regulated sectors by achieving pay equity through proactive measures. The act will require all federally regulated employers to analyze their compensation practices, even if they have not received a complaint and even if they believe there is no wage gap in their organization.
Colorado’s Equal Pay for Equal Work Act went into effect on January 1, 2021. The act creates significant compliance burdens for employers with even one employee in Colorado. In fact, the act is the only law in the United States to require employers to (1) post compensation and benefits information with each job posting for Colorado jobs and (2) internally post promotional opportunities to current Colorado employees on the same day and sufficiently in advance of promotion decisions.
On June 28, 2021, the U.S. Equal Employment Opportunity Commission (EEOC) announced that it is extending the July 19, 2021, deadline to submit and certify 2019 and 2020 EEO-1 Component 1 reports to Monday, August 23, 2021. The EEOC still “encourage[s] eligible employers to file the required EEO-1 Component 1 report(s) as soon as possible.
In January of 2019, Connecticut implemented legislation that, among other things, prohibited employers from inquiring about an applicant’s prior salary history. The Nutmeg State took it a step further yesterday, when Governor Ned Lamont signed House Bill No. 6380, titled “An Act Concerning the Disclosure of Salary Range for a Vacant Position.” As the name suggests, the new law requires employers to disclose the “wage range” for vacant positions to employees and prospective employees, under a variety of circumstances.
The Supreme Court of the United Kingdom has held in Asda Stores Ltd v. Brierley and others that Asda supermarket retail employees can appoint Asda depot workers as their comparators in an equal pay claim despite their working in different ‘establishments’ of the business.
In 2021, the Illinois General Assembly passed Senate Bill (SB) 1480, which amends the Illinois Human Rights Act, the Illinois Equal Pay Act, and the Illinois Business Corporation Act. On March 23, 2021, Governor J.B. Pritzker signed the bill into law.
On February 3, 2021, the California Department of Fair Employment and Housing (DFEH) updated its frequently asked questions (FAQs) to make clear that employers can seek an extension for reporting year 2020—known as a request for an “enforcement deferral period”—as to its newly enacted pay data reporting requirement that reports are otherwise due on March 31, 2021.
Now that the inauguration has passed and the Biden administration has begun its work, it is a good time for retailers to take stock of the labor and employment issues that are likely to assume prominence in 2021, and to consider preparing to meet the challenges each of these issues pose. In no particular order, below are the top 10 issues that are likely to keep retail employers up at night in 2021.
On September 30, 2020, California Governor Gavin Newsom signed into law a pay data reporting requirement for employers that assigns responsibility for collecting such data to the California Department of Fair Employment and Housing (DFEH). To assist employers with this filing requirement, the DFEH recently established a web page and published answers to a a series of frequently asked questions (FAQs) that address several topics related to the upcoming filings, which are due no later than March 31, 2021.