New Pay Equity Requirements for New York State Contractors

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.