What's happening
This bill strengthens pay equity laws by requiring employers to justify wage differences, post employee rights, and increases penalties for violations.
Why it matters
Raises the bar for employer justifications. Employers must now prove that any pay differences are truly job-related, based on business necessity, and do not perpetuate sex-based wage disparities—closing common loopholes in pay equity defenses.
Empowers employees and advocacy organizations. Not only can affected employees sue for violations, but organizations representing them can also file lawsuits, broadening access to legal recourse and increasing accountability for employers.
Substantially increases financial consequences for violations. Employees can recover up to three times the amount of unpaid wages, plus compensatory damages, attorneys' fees, and additional penalties—creating a strong deterrent against pay discrimination.
Mandates workplace transparency. Requiring prominent posting of employee rights ensures workers are informed about pay equity protections, making it easier to recognize and challenge unlawful wage practices.
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Who cares
Headline styles
Prove Pay Differences Are Fair
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to labor
- Referred to labor
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2474
2019-2020 Regular Sessions
IN SENATE
January 25, 2019
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to demonstrating the permissibility of a differential in rate of pay
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 194 of the labor law is amended by adding three new subdivisions 5, 6 and 7 to read as follows:
5. An employer asserting that differential wages are paid for a permissible reason under subdivision one of this section shall demonstrate that such reason:
a. Does not perpetuate a sex-based differential in compensation; and
b. Is job-related with respect to the position in question and is consistent with business necessity. Such exception under this paragraph shall not apply when the employee demonstrates:
(i) That an employer uses a particular employment practice that causes a disparate impact on the basis of sex;
(ii) That an alternative employment practice exists that would serve the same business purpose and not produce such differential; and
(iii) That the employer has refused to adopt such alternative practice.
6. Every employer subject to this section shall post in a conspicuous place or places on his or her premises a notice to be prepared or approved by the commissioner, which shall set forth excerpts of this section and any other relevant information which the commissioner deems necessary to explain this section. Any employer refusing to comply with the provisions of this section shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars.
7. a. Any employee or former employee, for and on behalf of himself or herself and other similarly situated employees, or any organization representing such an employee or former employee aggrieved by a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08738-01-9
S. 2474 2
violation of this section may file a civil action in any court of competent jurisdiction to obtain relief.
b. An aggrieved party shall be entitled to recover any unpaid wages and/or benefits, compensatory damages, and liquidated damages in an amount up to three times the amount of unpaid wages and/or benefits owed, exclusive of interest, as well as an award of appropriate equitable relief, including reinstatement of employment, fringe benefits and seniority rights, and reasonable attorneys' fees, including expert fees and other litigation expenses.
c. The filing of a civil action under this section shall not preclude the commissioner from investigating the matter and/or referring the matter to the attorney general.
d. An employer who violates this section, in addition to any other relief to which any department or a complaining party may be entitled for such a violation, shall be liable for a civil penalty in an amount up to three hundred percent of the total amount of the wages found to be due, exclusive of interest, which shall be payable directly to the complaining party. The order may also direct payment of reasonable attorneys' fees and costs to the complaining party. The order may further direct that an administrative penalty be paid to the department in the amount up to one hundred percent of the total amount of wages found to be due.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to demon- strating the permissibility of a differential in rate of pay
Purpose
To provide protections to employees against wage discrimination on the basis of sex
Summary of provisions
Section 1 amends section 194 of the labor law by adding three new subdi- visions 5, 6 and 7 providing an employer asserting differential wages are paid for a permissible reason shall demonstrate that such reason (a) does not perpetuate a sex-based differential in compensation; and (b) is job-related with respect to the position in question and is consistent with business necessity. However, such exception shall not apply when the employee demonstrates (i) that an employer uses an employment prac- tice that causes a disparate impact on the basis of sex; (ii) that an alternative employment practice exists that would serve the same busi- ness purpose and not produce such differential; and (iii) that the employer has refused to adopt Every employer subject to this section shall post a notice to be
Read the full memo (636 words)
prepared or approved by the commissioner, setting forth excerpts of this section and any other relevant information the commissioner deems neces- sary to explain this section. Any employer refusing to comply shall be punished by a fine of between $100 and $500.
Employees and former employees aggrieved by a violation of this section may file a civil action in any court of competent jurisdiction to obtain relief. An aggrieved party may recover unpaid wages and/or benefits, compensatory damages and liquidated damages in an amount up to three times the amount of unpaid wages and/or benefits owed, exclusive of interest, as well as an award of equitable relief, including rein- statement of employment, fringe benefits and seniority rights, and reasonable attorneys' fees, including expert fees and other litigation expenses.
The filing of a civil action under this section shall not preclude the commissioner from investigating the matter and/or referring the matter to the attorney general.
An employer who violates this section shall be liable for a civil penal- ty in an amount up to 300% of the total amount of wages found to be due, exclusive of interest, payable directly to the complaining party. The order may also direct payment of reasonable attorneys' fees and costs to the complaining party, in addition to directing an administrative penal- ty be paid to the Department of Labor in an amount up to 100% of the total amount of wages found to be due.
Section 2 provides this act shall take effect on the thirtieth day after it shall have become a law.
Existing law
No employee shall be paid a wage at a rate less than the rate at which an employee of the opposite sex in the same establishment is paid for equal work on a job the performance of which requires equal skill, effort and responsibility, and which is performed under similar working conditions, except where payment is made pursuant to a differential based on a seniority system; a merit system; a system which measures earnings by quantity or quality of production; or a bona fide factor other than sex, such as education, training, or experience.
Justification
We must do all we can to protect workers from wage discrimination on the basis of sex. When an employer asserts there is a permissible reason for a differential rate of pay, the burden should be on such employer to demonstrate the reason does not perpetuate a sex-based differential and is job-related and consistent with business necessity. Appropriate civil recourse should be available to employees aggrieved by this form of discrimination.
Legislative history
04/11/16 REFERRED TO LABOR
Fiscal implications
None
Local fiscal implications
None
Effective date
This act shall take effect on the thirtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.