On April 24, 2018, Governor Phil Murphy signed into law what he described as the “most sweeping equal pay legislation in America.” This legislation, known as The Diane B. Allen Equal Pay Act (“the Act”), seeks to eliminate the pay disparity gap. While it is hard to argue with the Act’s  good intentions, many unintended consequences are anticipated due to its expansive nature. For this reason, Governor Christie vetoed a similar bill because he recognized that it would “punish as discriminatory, otherwise innocuous conduct.”

The most significant consequence is the expected increase in litigation against employers. Notably, under the law, current or former employees may file lawsuits easily, years or even decades after the initial allegedly discriminatory wage-related decisions were made. These lawsuits will be difficult to defend and have the potential for significant damages. Thus, New Jersey businesses of all sizes must take steps to prepare themselves, as best they can.

Easy to Bring a Lawsuit