New Pay Equity Requirements for New York State Contractors
January 11, 2017
While there is an expectation that the new Trump administration will nix the revised EEO-1 Report pay collection requirements, employers should be aware of what appears to be a new trend that states are stepping into the void and imposing new pay data reporting obligations.
Most recently, New York Governor Andrew Cuomo signed an Executive Order on January 9, 2017 that requires New York state contractors to provide to the state data on the job titles and salaries of all employees performing work on state contracts after June 1, 2017.
Executive Order No. 162, entitled “Ensuring Pay Equity by State Contractors,” also requires that the contractor report the job titles and salaries for its entire workforce if the contractor cannot identify which employees are working directly on the state contract. These reports must be made quarterly if the prime contract is in excess of $25,000, and monthly for prime construction contracts in excess of $100,000.
Governor Cuomo, who is rumored to be considering a presidential run in 2020, also signed Executive Order No. 161, entitled “Ensuring Pay Equity by State Employers,” which forbids state entities from asking about a job applicant’s compensation history.
However, once a conditional offer of employment has been extended-with compensation-a state entity may request and verify compensation. If a state entity is already in possession of an applicant’s prior compensation, it may not be relied upon in determining the applicant’s salary, unless required by law or collective bargaining agreement. While an applicant can volunteer their compensation information, the Executive Order provides that an applicant’s refusal to provide their compensation information may not be considered in making a hiring decision.
We will continue to update our website with additional developments. If you have any questions or need additional information, please contact your FortneyScott attorney or Nita Beecher at FortneyScott.
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