By Ty Hyderally, Esq and Lorena Meza

August 5, 2024

As gender equality remains a work in progress, New York Labor Law § 194 remains a potent weapon against wage discrimination. This law is commonly referred to as Equal Pay Provision and aims at ensuring that employees are paid equally for equal work regardless of their gender if they are working under the same conditions. It is important to take a closer look at why this law is considered a foundation of wage equality and its effects on businesses and workers.  In its essence, New York Labor Law § 194 prohibits wage discrimination based on sex, requiring employers to provide equal pay for equal work. This provision is clear: this means that if two employees are doing the same job in terms of skill, effort, and responsibility, they should be paid the same amount of money. The goal is to eliminate the gender pay gap and make it possible for jobs to be remunerated according to the tasks involved and not the gender of the employee.

However, the law does provide for situations where pay differential is acceptable.  For example, differences in remuneration are acceptable if the workers are paid according to their experience, performance, or level of qualification. These exceptions acknowledge that other factors, including years of service or production rates, may indeed have a bearing on pay. Also, wage disparities are allowed insofar as they are based on factors such as education or training, provided that such factors are not derived from a gender pay gap and are business-related.

Another essential aspect of the law is its emphasis on disparate impact. For example, if an employee can prove that a given pay practice has adverse effects on employees of a given sex, that would support a claim of disparate impact. In that case, the law also requires that the employee prove an alternative practice that would help achieve the company’s objectives while avoiding such disparities.

New York Labor Law § 194 also safeguards the employees’ right to disclosure of wages. Employers are not allowed to prevent employees from discussing their wages. Employers may control the time, place, and manner of such conversations, but such policies cannot be unreasonable and must satisfy other legal standards. Employees should be allowed to talk about wages and should not be fired for exercising their rights.

In addition, the law cautions employers to be careful when evaluating compensation policies. The New York Labor Law § 194 is not only a legal provision but also a matter of equity. The pay practices and policies should be reviewed from time to time and the organization should have fair compensation policies and procedures to minimize legal issues and maintain a healthy organizational climate. On the other hand, employees must know the rights that this law affords them. Understanding that they can collectively bargain on wages and fight for equal pay is crucial to ensure that they are being paid fairly. With this knowledge, the workers can stand up for themselves and the other workers to demand that fairness is achieved in the workplace.

Overall, New York Labor Law § 194 is a significant step forward in the struggle for equal wages between men and women. In this regard, the law is crucial since it addresses issues of equal pay for equal work and provides means to combat discrimination and unfairness in pay. While striving for equality, it is important to acknowledge and abide by this law in order to establish equal opportunities for work.

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