Just last week, a new equal pay law went into effect in New York State. In the past, equal pay laws were limited to pay disparities between men and women for “equal work.” Although unequal pay across many protected categories could always be deemed prohibited by and be addressed under general discrimination laws, New York State law now specifically requires equal pay across a variety of protected classes (such as race, color, national origin, etc.) for “substantially similar” work. This means that titles are not as important as what employees actually do in their jobs. If two employees are responsible for stocking shelves, just because one employee is called a clerk, and the other an assistant manager, it may not be appropriate for their pay to be different. Or, if one employee is called an Assistant Vice President versus an Associate Vice President, but they have the same job responsibilities, their pay may need to be the same. Employers can still justify pay differences based on a seniority system, a merit system, on quantity or quality of production, or a job-related factor such as education, training, or experience.
Can I be Asked About My Salary History if I am Interviewing for a Job?
The answer will soon be no for all employers in New York State. In January 2020, employers will be prohibited from asking both new and current employees their salary history.[1] One of the reasons a lot of people end up with a pay disparity over time is that an employee may start off in a job with a lower salary that continues to drag down wages over the course of a career. Or, if men and women are hired to perform the same job at the same time, as their careers progress, men often make more at the same company. The result: female employees are stymied in their ability to earn money commensurate with their male counterparts in the same company.
How Much Money is Involved?
Over a lifetime, these pay disparities can really add up. For example, black women are paid 61 cents for every dollar that their white, male counterparts make.[2] When this is expanded to all women, the gap goes down to 80 cents for every dollar a man earns.[3] And we are not just talking pennies, over a 40-year career, a woman could earn nearly a million dollars less than a white male regardless of education, geographical location, and age.[4] For example, the average salary of the 40 lowest-paying jobs is $23,600 for black women, compared with $30,000 for white men.[5] The difference is even more stark in high-salary positions since black women earn about $70,000 compared with $105,000 for white males.[6] This can also mean minorities and women will need to work until they are older to have comparable retirement savings.
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[1] Currently, New York City has such a ban, but only for new employees.
[2] https://www.cnbc.com/2019/08/22/heres-how-the-gender-wage-gap-affects-this-minority-group.html
[3] Id.
[4] Id.
[5] Id.
[6] Id.