4 Steps for New Jersey Equal Pay Act Compliance

As the first anniversary of the passing of New Jersey’s Diane B. Allen Equal Pay Act approaches, there have been several lawsuits filed which allege that employers have violated this law. This article focuses on what New Jersey employers should consider doing now to reduce their exposure to claims brought under this expansive pay equity law.

The New Jersey Equal Pay Act became effective on July 1, 2018. The law, considered by many as the nation’s strongest pay equity regime, makes it unlawful for an employer to discriminate against employees who are members of a protected class by paying them “at a rate of compensation, including benefits, which is less than the rate paid by the employer to employees who are not members of the protected class for substantially similar work, when viewed as a composite of skill, effort and responsibility.”