Where Federal Expectations Are Low Governor Cuomo Introduces Employee Protective Mandates in New York
Earlier this week New York Governor Andrew D. Cuomo (D) signed two executive orders and announced a series of legislative proposals specifically aimed at eliminating the wage gap in gender, among other workers and strengthening equal pay protection in New York State. The Governor’s actions are seen by many as an alternative to employer-focused federal policies anticipated once President-elect Donald J. Trump (R) takes office.
According to the Governor’s Press Release, the Governor will seek to amend State law to hold the top 10 members of out-of-state limited liability companies (“LLC”) personally financially liable for unsatisfied judgments for unpaid wages. This law already exists with respect to in-state and out-of-state corporations, as well as in-state LLCs. The Governor is also seeking to empower the Labor Commissioner to pursue judgments against the top 10 owners of any corporations or domestic or foreign LLCs for wage liabilities on behalf of workers with unpaid wage claims.
On January 9, 2017, Governor Cuomo signed two executive orders. The first, “Ensuring Pay Equity by State Employers,” prohibits state agencies and other state entities from asking job applicants for their wage history or considering previous salaries in hiring decisions until the applicant is extended a conditional offer of employment with compensation.
The second executive order, “Ensuring Pay Equity by State Contractors,” requires all state agencies and authorities to include a provision in all state contracts, agreements and procurements issued on or after June 1, 2017 requiring contractors and subcontractors to agree to include workforce utilization reports, which shall include in addition to the currently required equal employment opportunity data, the job title and salary of employees of contractors or subcontractors performing work on a state contract, or of a contractor or subcontractor’s entire workforce if the contractor or subcontractor cannot identify the individuals working directly on the state contract in question. This information shall be reported to state agencies and authorities on a quarterly basis for all prime contracts valued at more than $25,000, and on a monthly basis for prime construction contracts valued at more than $100,000.
While there will likely be a noticeable shift toward employer-focused regulations and policies under the impending Trump Administration, employers should take heed of certain states, such as New York, that will continue to advance protections for employees where the federal government has not.