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Articles Posted in Equal Pay Act

In the wake of several recent equal pay settlements between female university professors and their employers, the newest litigation of this ilk has popped up in New Jersey. A lawsuit filed under the New Jersey Equal Pay law in state court last week by five women professors at Rutgers University alleges that they are paid significantly less than their male counterparts. Three of the five plaintiffs are world-renowned scholars in their fields, having published multiple books, hundreds of articles, given numerous presentations, and won several awards. In fact, two of the plaintiffs have achieved the most prestigious professional designation at Rutgers, and yet all five are still paid tens of thousands of dollars less than male professors with the same or less impressive credentials.

IMG_5357-300x169One of the plaintiffs, Professor Deepa Kumar, who teaches journalism and media studies and is one of the country’s leading experts on Islamaphobia, was hired in 2004 at a salary that was the same or higher than four white men and women who were hired contemporaneously. However, today, Professor Kumar makes approximately $25,000 less per year than other professors in her department despite multiple attempts to negotiate pay raises. Another plaintiff, Professor Judith Storch, a distinguished professor of nutritional sciences, recently learned that her salary was on average $46,000 lower than all other distinguished professors in biomedical science.

Remarkably, Rutgers already has in place a system of review by which professors may request wage increases in order to advance the goal of pay equity. The plaintiffs in the current lawsuit claim that system is not working. In 2018, the University’s faculty union commissioned a study that showed pay discrepancies between male and female faculty members. Overall, women faculty were paid 7% less than men. Over time, that gap can add up to a substantial amount of lost income. Professor Kumar estimates that she has lost over $300,000 since her employment with Rutgers began. Another litigant against Rutgers, Professor Nancy Wolff claims she lost $500,000. Putting that loss into terms of gender inequity, Professor Wolff pointed out that half million dollars that should have been paid to her was instead used by her employer to pay her white male counterparts at significantly higher rates than she was being paid.

The absence of pay equity between men and women, commonly known as the “gender wage gap” has been a newsworthy yet unresolved manifestation of gender discrimination for decades. Pay inequities exist in virtually all industries and professions and are not limited to gender disparities.

IMG_2135-300x169Most recently, one of New Jersey’s premier educational institutions, Princeton University, settled a lengthy dispute over whether it was paying female professors equally to male professors. On average, a full-time professor at Princeton earns over $200,000 per year, but there are variations in pay that Princeton asserts are dependent on department, job performance, and the market-driven economics of filling top spots in academia. But when the U.S. Department of Labor conducted a federal pay discrimination investigation into Princeton’s compensation structure, its findings indicated discriminatory pay practices along gender lines. The Department of Labor’s review of salaries between 2012 and 2014 found that among professors, women were being paid less than men despite holding the same jobs and having the same experience and credentials.

Princeton contested the Department of Labor’s findings for years and still admits no culpability, arguing that the investigation was flawed. It has, however, finally agreed to pay nearly $1.2 million — including $925,000 in back pay and at least $250,000 in future salary adjustments — to female professors, including those who have left the university. Under the Early Resolution Conciliation Agreement between Princeton and the Department of Labor, Princeton will award back pay to the 106 female professors identified by the investigation as having been underpaid between 2012 and 2014 and award future pay raises. Princeton also agreed to analyze faculty salaries at the time of hire and in its annual merit increase process, to make sure there are no future pay gaps between male and female employees. In a statement, a Princeton spokesperson said that the university would engage in hiring initiatives in fields that typically have a low representation of women and encourage women to serve in leadership positions such as deanships. It will also train employees on pay equity.

The New Jersey Division of Civil Rights has published its guidelines concerning the administration of the New Jersey Diane B. Allen Equal Pay Act.  The New Jersey Equal Pay Act, first enacted into law in 2018, makes it unlawful for employers to engage in discriminatory compensation practices and retaliate against employees for complaining about workplace wage related issues.  The guidelines issued by the New Jersey Division of Civil Rights will assist employers, employees, lawyers and judges on how to interpret the equal pay law in situations involving workplace wage discrimination and wage disparity.

IMG_3572-300x169The New Jersey Equal Pay Act prohibits employers from paying employees who are members of a protected class less than their counterparts who perform substantially similar work and are not in a protected class.  Unlike many other state equal pay laws, protected classes under the New Jersey equal pay statute are not limited to gender and instead include all other protected classes under the Law Against Discrimination such as age, sexual orientation, race, disability, national origin and others.

The New Jersey Equal Pay Act amended the New Jersey Law Against Discrimination to provide for significant penalties to employers who violate the law.  In addition to an award of back pay for up to six (6) years from the date of the last unlawful pay occurrence, the law allows an employee to recover an additional amount equal to three (3) years of the awarded back pay monetary amount as treble damages.

Institutions of higher education are often perceived as being ahead of the curve when it comes to issues of equality and progressive treatment of members of protected groups. In reality, this is not always the case — especially when it comes to women working as college coaches or as employees within the athletic departments of universities. In fact, there have been several high-profile instances of employment discrimination lawsuits within athletic departments of several “Power 5” athletic universities have made news in recent years. These high profile lawsuits have resulted in much needed increased public scrutiny of important issues of systemic discrimination within our country’s university athletic departments.   

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Perhaps most notably is the gender and sex orientation discrimination brought by a former field hockey coach and senior athletic official against the University of Iowa athletic department. In that case, Tracey Griesbaum and her partner Jane Meyer were employed by the University of Iowa’s athletic department. Griesbaum, a former field hockey coach at the University of Iowa, and Meyer, a senior department director, were romantic partners during their tenure at Iowa. Throughout their employment, both women alleged they were subjected to gender and sexual orientation discrimination by department director Gary Barta. Meyer and Griesbaum’s relationship was often scrutinized and used against them in their job performance reviews and assessments, despite being approved by administrative officials through appropriate process. Further, Meyer was passed over for promotions and paid drastically less than male coworkers who had fewer job responsibilities and less experience. 

The discrimination escalated when Griesbaum was fired in 2014. The University attributed her termination to allegations that she abused her athletes, but an extensive investigation revealed that these allegations were baseless. As a senior department director who recognized the unlawful behavior, Meyer complained about Griesbaum’s termination, explaining that it was discriminatory and unlawful, and brought up additional instances of gender discrimination occurring within the department. The following day, following her complaints, Meyer was subjected to that same discrimination when she was placed on administrative leave and transferred out of the athletic department. Following Meyer’s unlawful transfer and termination, the two former employees filed lawsuit in a Iowa state court. Through the suit, Meyer and Griesbaum argued that they had been victims of discrimination based on both gender and sexual orientation. 

On the morning of July 10, 2019, New York State Governor Andrew Cuomo signed new legislation into law providing protections for equal pay for women and increasing protections against race and gender based employment discrimination. The legislation was signed at the ticker-tape parade for the United States Women’s National Soccer Team, who won the World Cup on July 7th and have made headlines in recent months regarding gender-based pay disparity. The passage of these bills was a symbolic action of solidarity between New York State and the U.S. Women’s National Team, who filed an equal pay lawsuit in Federal Court earlier this year. After signing the legislation into law, Governor Cuomo stated, “We say to the U.S. Soccer League, and we say to FIFA, if you don’t pay women what you pay men, then you have no business in the state of New York.”

These three bills, signed this past summer, are part of a larger effort by the New York State to provide greater protections to employees in the state, aiming to prohibit employment discrimination based on gender and race. These laws will hopefully mark the development of a more employee-friendly workplace environment within the state. As New York is the third largest contributing state to America’s national GDP, such an improvement would be significant. New Jersey has also adopted significant employee-friendly legislation in the past two (2) years, including the New Jersey Equal Pay Act, the S121 Non-Disclosure Bill, Paid Sick Leave and amendments to the New Jersey Wage Payment and New Jersey Wage and Hour law. Following these enactments, New York’s similar enactments will serve to further enhance the protections for employees within both states, and across the region.

The first of two bills Governor Cuomo signed on July 10, Senate Bill 5248, prohibits wage differentials based on protected class status. It requires equal pay for substantially similar work when performed under similar working conditions. Similar to the New Jersey Equal Pay Act, the bill only allows for a differential rate of pay when it is based on a seniority or merit system, a system that measures earnings by quantity or quality, or a bona fide factor consistent with business necessity. Additionally, the bill lowers the burden of proof for a person claiming discrimination and provides a civil penalty for violations of the act. The stated purpose of the law is to prevent irrelevant factors – such as gender – from influencing employers in their salary distribution decisions. The passage of this law came after a wave of equal pay lawsuits have shaken governments across the United States. The bill will go into effect 90 days after its enactment.

A new bill was signed into New Jersey law on July 25, 2019, that furthers a statewide effort to reduce inequality in pay for New Jersey employees.  Because Governor Murphy is out of the state on vacation, Lieutenant Governor Sheila Y. Oliver signed Assembly Bill 1094 into law yesterday after it was passed in the New Jersey Assembly on March 25, 2019 and the Senate on June 20, 2019. The new law will prohibit employers from asking or requiring job applicants to disclose their salary history during the application process. The new law is intended to address continued pay inequality and gender discrimination that has long existed in the employment environment.

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The newly enacted law prohibits employers from screening applicants based on their salary history, including prior benefits. Employers may not utilize any minimum or maximum criteria in relation to salary history to disqualify potential candidates, requiring that the application process be predicated entirely on experience and capabilities as opposed to prior salary and other irrelevant factors. Employers may only request the salary history of their applicants after they have provided them with an offer of employment that includes a compensation package. While employers may utilize an applicant’s prior salary in their compensation determinations if that information is volunteered by the applicant without coercion, an applicant’s denial to provide such information cannot be considered as a factor in any employment decisions.

The bill amends the New Jersey Law Against Discrimination, which prohibits discrimination, harassment and retaliation based on protected characteristics in employment. Specifically, it amends the New Jersey Law Against Discrimination by adding the following language:

The FIFA Women’s World Cup has captivated the attention of nations around the world, and the United States is no exception. With the group stage coming to a close this week, the U.S. Women’s National Team (“WNT”) has already demonstrated dominance in their first two games, beating Thailand and Chile by a combined score of 16-0. As the WNT’s World Cup successes have increasingly dominated headlines, the team’s recent lawsuit  filed against their employer, the U.S. Soccer Federation, Inc. (“USSF”), has attracted increased attention as well. While the team battles to defend their FIFA World Cup title on the pitch, they battle in court to defend their rights, and the rights of women nationwide, to receive equal pay for equal work.

The law has long been that all people in the United States are entitled to equal pay for equal work (regardless of gender, race, or any other protected characteristic), as well as fair employment standards and work conditions. These protections were established with the passage of the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 and can be traced back to 1868 and the adoption of the Fourteenth Amendment to the United States Constitution. According to their Complaint, for decades the WNT has endured grossly unequal pay and inferior working conditions in comparison to the Men’s National Team (“MNT”). This has continued despite the fact that the WNT is demonstrably more successful and produces comparable revenue to the MNT for the USSF, which employs both the WNT and the MNT.

The Complaint filed by the WNT details the pay gap that exists between the two teams. It explains that if a male and female national team player each played 20 exhibition games in one year, the male player would earn an average of $263,320 while the female player would earn a maximum of $99,000. Male players who try out for and earn a place on a World Cup team earn $55,000, while female players only earn $15,000 for the same accomplishment. In 2014, the USSF provided the MNT with performance bonuses totaling $5,375,000 for losing in the Round of 16. By contrast, the WNT only earned $1,725,000 for winning the entire tournament. Despite advancing three rounds further that the MNT, and ultimately winning the entire tournament, WNT players earned less than a third of what the MNT players earned.  

New Jersey maintains a strong public policy in protecting employees who speak out against the employer’s for engaging in unlawful business activities.  The law recognizes that employers are responsible when they try to silence and hurt persons who oppose workplace conduct or activities that endangers people in the workplace and the public at large.  However, while New Jersey law clearly provides for immense legal protections for employees against workplace retaliation, this does not mean anyone who is fired for complaining to his or her employer will be successful in a claim for wrongful termination.

New Jersey first enacted its state whistleblower law, the New Jersey’s Conscientious Employee Protection Act (“CEPA”) in 1986. CEPA is broad in scope and considered as one of the farthest reaching state whistleblower laws in the entire country. CEPA is remedial legislation and is entitled to liberal construction by our courts.

Under of New Jersey’s whistleblower law, a worker cannot be terminated for opposing or refusing to participate in unlawful or certain other improper conduct of the employer.  By placing stiff penalties upon employers who violate the whistleblower law, the New Jersey anti-retaliation statute tries to discourage employers from engaging in illegal or unethical workplace activities.  The state law applies to private and public employers and employees.  It also can apply to independent contractors in certain circumstances depending on the specific facts and circumstances of the business relationship.

On February 19, 2019, Governor Phil Murphy signed into law an extensive expansion of New Jersey’s paid Family Leave Insurance program and amends the New Jersey Family Leave Act. The New Jersey paid family leave program, which is about 10 years old, provides employees with paid leave for qualifying reasons to care for a newborn, adopted child or sick relative.  The New Jersey Family Leave Act, which was adopted in 1989, provides for eligible employees the right to take up to 12 weeks off from work in a 24 month period in order to care for a family member who is suffering from a serious health condition or upon the birth or adoption of a child.The new expansion of the paid family leave law extends paid benefits to eligible employees from six weeks to twelve weeks.  The new law will also make the benefits payable at a higher rate. Currently, benefits pay out two-thirds of an employee’s pay, capped at $633 per week. The enhanced benefits will entitle eligible workers to 80% of their wages, up to $860 per week. Further, the law was also expanded with regard to intermittent leave, increasing the entitlement from 42 days to 56 days, beginning July 2020.

In 2008, New Jersey followed in California’s footsteps and became the second state to enact paid family leave. Unfortunately, awareness of the program and its benefits has not been widespread. A 2017 study showed that only 12% of New Jersey’s eligible new parents were receiving family leave benefits. The recent enhancements signed by Governor Murphy were previously vetoed in 2017 by then Governor Chris Christie, who stated that such an expansion would be too expensive for New Jersey workers to bear.

The amendments will also change the New Jersey Family Leave Act by providing job protections to employees of private businesses that have at least 30 employees.  This change in the New Jersey Family Leave Act will become effective as of June 30, 2019.  This change represents an expansion over the old law, which only provided protections to employees of private businesses with at least 50 employees.  The program is funded through payroll deductions paid by every single New Jersey employee.  As of January 1, every New Jersey worker is contributing based on their initial $34,400 in wages, for a maximum contribution of $27.52 per year.

The “Diane B. Allen” New Jersey Equal Pay Act was enacted in April 2018, and made effective as of July 1, 2018. In passing the Equal Pay Act, the legislature did not expressly state that the law would be applied retroactively to claims that arise before July 1, 2018.  In September 2018, the first court decision applying the New Jersey Equal Pay Act was decided by the United States District Judge William Martini of the District of New Jersey in Perrotto v. Morgan Advanced Materials, which held that that the New Jersey Equal Pay Act should not be applied retroactively since the legislature did not specifically provide so.

Since its enactment, the New Jersey Equal Pay Act has widely been recognized as providing the strongest protections to workers of any equal pay law in the United States.  The New Jersey Equal Pay Act, which amended New Jersey’s Law Against Discrimination, prohibits discriminatory pay practices for protected classes for performing substantially similar work. The law is not limited to gender-based pay discrimination, but also includes other protected classes such as race, disability and age. Under the law, an illegal employment practice occurs every time an employee is impacted by a discriminatory compensation decision.

The New Jersey Equal Pay Act also provides for broad protections against retaliation for employees who seek redress from discriminatory pay practices. Specifically, it prohibits an employer from taking reprisals against any employee for requesting from, disclosing with, or disclosing to an employee or former employee or a lawyer from whom he or is she seeking legal advice or governmental agency for information regarding the job title, occupational category, and rate of compensation on the basis of a protected trait such as sex, race, disability, age or others.

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