New York: Equal Pay Protections for State Contractors and Public Employees Boosted

No Prior Salary History Inquiries or Compensation Decisions for State Agencies – Effective January 9, 2017

Executive Order 161 prohibits New York state agencies from inquiring into a prospective or current employee’s prior salary history before a conditional offer of employment with compensation is made.  After such an offer is extended, the state agency can then seek verification of salary history with prior employers.  Furthermore, state agencies are prohibited from making compensation decisions based solely on the applicant’s prior salary history.

New York State Contractors Must Disclose Job Titles and Pay Data – Effective June 1, 2017

Executive Order 162 requires state contractors and their subcontractors to disclose employee job titles and salary rates.  The job title and pay data must be alongside the already-required equal employment opportunity demographic data (e.g., race, gender, and ethnicity).  This data is to be reported for each employee working on a contract, though if the employer cannot identify which employees are working directly on a contract, the employer must submit the data for the entire workforce.

The order covers all state contracts issued or executed on or after June 1, 2017.  Prime contracts valued over $25,000 must report on a quarterly basis, and prime construction contracts worth over $100,000 must report on a monthly basis.

Action Items

1. State contractors and subcontractors should review records for employees working on state contracts to determine the extent of reporting obligations.
2. Train hiring and payroll staff on appropriate timing for salary inquiries, and to eliminate compensation decisions based on prior wage and benefit history.
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.

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