GNYADA April 2016 Newsletter

NYC Bill Could Mean Jail-Time for Delinquent Wage Payment

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7 A new bill introduced in the New York City Council may change how businesses need to compensate inde- pendent contractors. The “Freelance Isn’t Free” Act would allow the NYC Department of Consumer Affairs (DCA) to enforce new rules regarding freelance pay- ment. If the bill becomes law, any freelance work valued higher than $200 — including singular projects for that amount — will require a written contract with a firm payment deadline. Employers will also face double damages for failing to meet contract parameters. In some cases, Provisions of New York State's Achieve Pay Equity Act (APEA) went into effect earlier this year. Dealers should review existing work- place policies, to assure they are in compliance with the new regulations. Equal pay for equal work The purpose of the equal pay initia- tive is simple: If two people are in the same job, they should receive the same pay. Under the APEA, there are only a few permissible exceptions to this requirement: education, training, experience, or provable factors that relate to job performance. Barring any of these, there should be no dis- parity in wages between male and female salespeople, warranty person- nel, office managers, etc. Equal pay proponents often cite prior job salary as a consideration that depresses women’s wages. Under the new law, using a new hire’s previous salary as a baseline to determine his

penalties could even entail incarcera- tion for the employer.

a freelancer could sue an employer for nonpayment, which would also impose penalties on top of the con- tractual damages. The threat of jail-time may seem harsh for a wage-payment violation, but it is not a new circumstance in NYS. Though rare, the State already provides for criminal charges for wage nonpayment. If adopted, the new law theoretically increases the likelihood of those instances. The Association will continue to monitor this proposal, as it moves through City Council. disclose what they make in conversa- tions with lower-level personnel. The new legislation also prohibits employees from divulging the wages of another employee without permis- sion. Geography is a factor Dealers who operate multiple facili- ties must give equal pay to employ- ees who hold similar positions within one geographical region (no larger than a county), even if they work at separate dealerships. This is admit- tedly one of the APEA’s tougher sells, as the definition of a “geo- graphical region” is highly debatable. Its aim, nevertheless, is to equally compensate similar workers who also have similar costs of living. If you have any questions on adjusting your dealership’s policies to comply with the state’s new equal pay laws, please call the Association: 718.746.5900

All independent contractors, which could include dealership valets, maintenance workers, detailers and more, would fall under the city law. Workers who complete tax form 1099 can already file wage-theft complaints with the New York State Department of Labor. But under this new bill, all NYC freelancers would be able to take similar action through the DCA.

Additionally, if the bill becomes law,

What Dealers Need to Know about NYS’s New Equal Pay Laws

or her new salary is impermissible, as that practice could perpetuate unequal pay. It will no longer be valid to say, “I’m paying this employee less than his or her prede- cessor, because he or she was earning less at a prior job.” No more secrecy around salary Businesses can no longer have poli- cies requiring compensation informa- tion to be kept confidential. The equal pay movement maintains that the wage gap between men and women can only be exposed — and ultimately corrected — if the work- place allows for salary figures to be shared among coworkers. Dealers can still instruct their staffs to exercise consideration in “water- cooler” conversations on this topic. For example, the new legislation intends for this dialogue to be had between peers. Managers, supervi- sors, etc. need not (and should not)

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • April 2016

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