Alabama: New Pay Equity Law Prohibits Retaliation Related to Wage History Inquiries; Adds Equal Pay Provisions

APPLIES TO

All Employers with AL Employees

EFFECTIVE

September 1, 2019

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The newly enacted Clarke-Figures Equal Pay Act (CFEPA) is Alabama’s first statewide pay equity law, and goes into effect on September 1, 2019.  The CFEPA takes its cues from the federal Equal Pay Act, but also includes provisions commonly seen in other state-level pay equity laws designed to combat discriminatory pay practices.

The CFEPA generally prohibits employers from paying employees of one sex or race less than employees of another if they are performing equal work within the same establishment, on jobs requiring equal skill, effort, education, experience, and responsibility.  Wage differentials can only be justified under specific exceptions: seniority system, merit system, a system that measures earnings by quantity/quality of production, or a differential based upon any factor other than race or sex.

In addition, the CFEPA prohibits employers from refusing to interview, hire, promote, or employ an applicant due to the applicant’s refusal to provide wage history.  Employers are permitted to inquire into wage history information, but cannot retaliate against an applicant who fails or refuses to provide such wage information.

The CFEPA also adds a recordkeeping requirement.  Employers must maintain certain payroll records, wage rate tables, and earnings records, in accordance with the Fair Labor Standards Act.

Action Items

  1. Have an audit conducted of employee job descriptions and compensation rates to confirm compliance with the new regulations.
  2. Have hiring managers trained on the new requirements for salary history inquiries.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

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