Alabama lawmakers will soon take up the issue of equal pay.
Under House Bill 368, sponsored by Rep. Adline Clarke, businesses would be prohibited from paying employees of one sex lower wages than employees of the opposite sex for substantially similar work. If wage differentials do exist, employers would need to prove that the disparity is based on one or more factors, such as a seniority system, a merit system, a system that measures income by quantity or quality of production, or another “bona fide factor” other than gender. Employers would also not be allowed to prohibit employees from disclosing their own wages or discussing or inquiring about other employees’ wages.
HB 368 would also require businesses to maintain records for employee wages and wage rates for three years. The Alabama Department of Labor may audit these records, as well as allow an employee to bring civil action for reinstatement and reimbursement of lost wages and benefits if wage inequality is found.
NFIB/AL has voiced opposition to this legislation. Typically, small business owners do not have a Human Resources Department, nor in-house legal counsel, to manage all of the requirements proposed by the bill, and it would, therefore, mean a significant increase in cost and regulatory burden for these employers.
The measure has been referred to the House State Government Committee.
