Complex law likely to create more lawsuits in NJ
TRENTON (April 25, 2018) – Starting on July 1, New Jersey will have the most sweeping equal pay law in the country. Gov. Phil Murphy said, “Pay equity will help us in building a stronger, fairer New Jersey.” NFIB testified against the bill which is highly complex and could increase the number of discrimination lawsuits against small businesses.
“Even if an employer has not discriminated, the legal cost of defending a single lawsuit can wipe out a small business,” said Laurie Ehlbeck, the state director of NFIB in New Jersey. “On top of that threat, the law is complicated, and it may be difficult for small-business owners to understand it and ensure they comply.”
The bill prevents businesses from paying a rate of compensation, including benefits, less than the rate paid to employees of a protected class for similar work, when viewed as a composite skill, effort, and responsibility. It also bars reprisals if an employee speaks with other workers about pay and provides three-times the monetary damages for a violation of the law.
