A summary of the New Jersey Equal Pay law

1. Diane B. Allen Equal Pay Act - Effective July 1, 2018
It is an unlawful employment practice to pay an employee, who is a member of a protected class,
at a rate of compensation, including benefits, less than the rate paid to an employee who is not a
member of the protected class for “substantially similar work” when viewed as a composite of
skill, effort and responsibility.
An employer may pay a different rate of compensation only if the employer demonstrates that
the differential is due to:
1. a seniority system,
2. a merit system,
3. or if the employer can demonstrate that the pay differential:
i. is based on legitimate and bona fide factors, such as training, education,
experience, or quantity or quality of production,
ii. is not based on, nor does it perpetuate, a stereotype,
iii. the factors are applied reasonably,
iv. one or more of the factors account for the entire wage disparity, and
v. factors are job-related and based on business necessity.
A factor based on business necessity is not a justification if an alternative business practice that
would serve the same business purpose without producing the wage differential.
An employer cannot reduce the pay of any employee in order to comply with any requirement.
Comparison of Wage Rates
The comparison of wage rates is based on wage rates at all of the employer’s facilities.
Requesting, Discussing and Disclosing Compensation Information
An employer may not take reprisals against any employee for requesting from, discussing with,
or disclosing to:
i. any other employee,
ii. former employee,
iii. a lawyer, or
iv. government agency
information regarding the job tittle, occupational category, and rate of compensation, including
benefits, or the gender, race, ethnicity, military status, or national origin of
i. the employee,
ii. any other employee, or
iii. former employee

2. Waivers Prohibited
An employer may not require, as a condition of employment, any employee or prospective
employee to sign a waiver, or otherwise require an employee or prospective employee to agree
not to make requests or disclosures.
Protected Legal Activity
It is an unlawful employment practice for an employer to discharge, intimidate, coerce or
otherwise take reprisals against any individual because that individual:
1. opposed any practices that the statute prohibits,
2. filed a complaint,
3. testifies or assisted in any proceeding,
4. sought legal advice,
5. shared information with a lawyer or with a governmental entity, or
6. aided or encouraged others in the exercise or enjoyment of any right granted or protected
by the statute.
Enforcement Procedure and Remedies
Administrative Proceeding
The statute provides that a complaint (known as a "charge") to the Division on Civil Rights must
be filed within 180 days after the occurrence of the alleged act of discrimination. A charge may
be filed by an individual, by the Commissioner of Labor and Workforce Development, or by the
Commissioner of Education. A charge may also be forwarded to the Division by the Equal
Employment Opportunity Commission (EEOC), and this is considered to be a filing.
The Division has authority to conduct an investigation not only of a claimed violation but also to
determine whether a violation has occurred. It may subpoena witnesses and documents, take
depositions and serve interrogatories. As part of the investigative process it may conduct a "fact-
finding conference" among the parties and a representative of the Division. After conducting an
investigation if it determines that there is "probable cause" for concluding that a violation has
occurred, it so notifies the employer involved, and is then required by the statute to endeavor to
conduct a conciliation meeting. Attendance at such meeting is voluntary. Thereafter, if the matter
has not been resolved satisfactorily to the Division, it has the authority to proceed to a formal
hearing.
The hearing is conducted by the Office of Administrative Law before an Administrative Law
Judge. The case on behalf of the complainant is presented by the Attorney General's
office; however, at any time after 180 days from the filing of a complaint the complainant may
request permission to present his case by himself or through his own attorney, and such request

3. shall be granted unless the Director of the Division has issued a finding of "no probable cause"
or has otherwise dismissed the complaint.
If as a result of the hearing the charge of violation is substantiated, the Director of the Division
has the authority to issue an appropriate remedial order against the employer, which may include
the duty of taking "affirmative action" aimed at preventing further violations. (The statute does
not otherwise require the taking of affirmative action by an employer.) In addition, the Director
has the statutory authority to award compensatory damages, including damages to compensate
for emotional distress, to the same extent as is available in common law tort actions, and to
impose a penalty of up to $10,000 for a first offense and up to $50,000 for each subsequent
offense. An order of the Director is enforceable in the courts.
An individual can by-pass the foregoing procedure and initiate a civil suit in Superior Court
without filing a complaint with the Division. If he the individual does so, he/she waives any right
to file with the Division. Or, he the individual can file a complaint with the Division and then
withdraw that complaint and institute suit in Superior Court unless in the interim the Division
has issued a finding of "no probable cause"; in such case the finding of "no probable cause" is
reviewable in the Appellate Division.
Civil Suit
The statute of limitations applicable to suits brought in Superior Court is 2 years from the time
an unlawful employment action occurs.
An unlawful employment practice occurs, with respect to discrimination in compensation or in
the financial terms or conditions of employment, each occasion that an individual is affected
by application of a discriminatory compensation decision or other practice, including, but not
limited to, each occasion that wages, benefits, or other compensation are paid, resulting in whole
or in part from the decision or other practice.
It is an unlawful employment practice to require employees or prospective employees to consent
to a shortened statute of limitation.
In a civil suit, the statute provides for:
i. a jury trial,
ii. back pay, up to 6 years for wage discrimination
iii. compensatory damages, including for emotional distress
iv. punitive damages
v. Mandatory treble (triple) damages, and
vi. reimbursement for attorneys’ fees.
It is an unlawful employment practice to require employees or prospective employees to waive
any of the protections provided by the statute.

4. State Government Public Works Contracts
Subject to regulations, any employer, regardless of its location, that enters into a contract with a
public body to provide qualifying services to the public body shall provide a report to the
Commissioner of Labor and Workforce Development of information regarding the compensation
and hours worked by employees categorized by gender, race, ethnicity and job category.
Data regarding compensation and hours worked by employees shall be reported in pay bands and
the employer shall provide a report for each establishment.
The information shall be made available by the to the Division on Civil Rights and, upon request,
provided to anyone who is or was an employee of the employer during the period of any of
the public works contract between the employer and any public body, or any authorized
representative of the employee.