Labor Law Poster Compliance Updates

NYC Employers Banned from Checking Applicants’ Criminal Backgrounds

Wed, 28 Oct 2015 16:03:00 -0600

Yesterday, October 27, 2015, the Fair Chance Act went into effect in New York City. Under the new law, employers cannot ask a job applicant about his or her criminal history or request to authorize a background check, until after the job position is offered. Employers cannot express any employment limitation based on an individual’s arrest or criminal conviction in a job advertisement, application, and interview questions. The goal is to give individuals a fair chance to be judged by his or her qualifications during the hiring process.

Once the job position is offered, an employer is allowed to ask about and consider a job applicant’s criminal history. If the employer decides to take an adverse action after extending the offer of employment, the employer must follow three steps. The employer must provide the applicant with:

A written copy of Form 23-A Evaluation (Fair Chance Act Notice)
A copy of the consumer report obtained
Three business days to respond to the employer’s concerns or decision

The law does not apply to police or peace officers, and city administrative services applicants. For more information, make sure to visit New York City's Commission on Human Rights website.

What’s Right in California – The State’s Fair Pay Mission

Tue, 27 Oct 2015 14:39:00 -0600

This October California’s Governor Brown signed into law the California Fair Pay Act significantly changing the way equal pay rights between men and women are tested. The current equal pay standard relies on a narrowly applied job comparison, sometimes making it difficult to establish an equal pay violation. The Fair Pay Act, which takes effect January 1, 2016, broadens the analysis of comparable work and expands the boundaries of comparison. The Act also makes it tougher for employers to rationalize gender wage differentials.

Currently, Labor Code 1197.5 prohibits an employer from paying an employee a wage rate less than the rates paid to employees of the opposite sex ”in the same establishment for equal work.” The Fair Pay Act changes the term “equal work” to “substantially similar work.” The “substantially similar work” standard requires analyzing the work “as a composite of skill, effort and responsibility, and performed under similar working conditions.” The Fair Pay Act also eliminates the requirement that the wage differences exist in the same establishment, allowing the comparison of wages from different work locations. As before the Fair Pay Act, wage differences may still be explained by a seniority system, a merit system, the quantity or quality of production, or a bona fide factor other than sex, but the employer will now have the burden of proving it used, and reasonably applied, such factors to account for the entire wage differential.

The Act authorizes employees to discuss their own wages and the wages of others and inquire about another employee's wages. To enforce their rights, employees may file a complaint with the Division of Labor Standards Enforcement or file a civil action against their employer. If the claim is successful, they can recover lost wages and work benefits, interest and litigation expenses. Finally, the increases an employer’s recordkeeping requirements concerning employees' wages, job classifications and the terms and conditions of their employments from two years to three.

NYC Bans Employment Credit Checks

Mon, 26 Oct 2015 09:30:00 -0600

As reported in our blog on April 21, 2015, New York City (NYC) introduced a bill that if passed would prohibit an employer from asking job applicants or current employees questions regarding their credit history. On May 6, 2015, NYC Mayor Bill de Blasio passed the Stop Credit Discrimination in Employment Act. The law became effective September 3, 2015.

Employers with four or more employees are prohibited from running a credit check, asking questions regarding credit history, and using credit history to make employment decisions, such as firing, hiring, or promoting an individual. Credit history is defined in the law as an individual’s credit worthiness, credit standing, credit capacity, or payment history as indicated in a consumer credit report, credit score, or information obtained from an employer directly from the individual. There are job positions exempt from the provisions. Exemptions apply to police officers, peace officers, positions subject to background investigation by the department of investigation, position where employee is required to be bonded under the City, state or federal law, position where employee is required to possess security clearance under federal law or state law.

Employers who violate the Stop Credit Discrimination in Employment Act may have to pay lost wages and other damages to affected employees and may be subject to civil penalties of up to $125,000. Willful violations may result in penalties of up to $250,000. Employers must review their credit check practices. For more information, make sure to visit NYC Commission on Human Rights’ website.