The Diane B. Allen Equal Pay Act, which becomes effective July 1, 2018, does not simply address the issue of equal pay. Although the equal pay component is significant, the act also contains several other important provisions, including an expansive anti-retaliation section, enhanced damages, a longer statute of limitations, and a prohibition against the shortening of the Law Against Discrimination’s two-year statute of limitations. In addition, the act imposes extensive reporting requirements for employers that contract with public bodies.

Equal Pay Provisions

The Equal Pay Act (available at http://www.njleg.state.nj.us/2018/Bills/S0500 /104_R2.pdf) provides that, except in circumstances where a “seniority system” or “a merit system” is utilized, an employer may not compensate employees who are members of a protected category and who do “substantially similar work” at a rate less than that paid to employees outside the protected category. In comparing wage rates, one must look not only at a specific geographic area or region, but at the rates in all of an employer’s operations or facilities. Although the act has been touted as addressing discriminatory pay practices due to gender, it also bars discrimination based on, inter alia, age, race, national origin, marital status, sexual orientation, disability or service in the armed forces.