Alabama Equal Pay Act of 2024

The Alabama Equal Pay Act of 2024 is a significant update to the state's efforts in addressing wage disparities based on gender and race. Here's an overview of the key provisions and changes introduced by this act:

1. Equal Pay for Equal Work: The act mandates that employers cannot pay workers less than employees of another race or gender for equal work requiring equal skill, effort, education, experience, and responsibility. This is consistent with federal standards but now explicitly applicable within Alabama state law.
2. Wage History: Employers are prohibited from retaliating against applicants who refuse to provide their wage history. Although employers can still ask about wage history, they cannot use a refusal as a basis for not hiring or promoting an applicant​​.
3. Damages and Legal Recourse: Employees who prove wage discrimination can recover lost wages and interest. If they also win a related federal case, they must return the lesser of the two awards. The act allows employees to file lawsuits within two years of the discriminatory act. This two-year statute of limitations aligns with the federal Equal Pay Act but does not extend to the three-year limit for willful violations under federal law​​.
4. Recordkeeping Requirements: Employers must adhere to the recordkeeping standards set by the Fair Labor Standards Act, maintaining detailed records of employee pay for three years, which is more stringent than the one-year requirement under Title VII​​.
5. Potential Improvements: Recommendations to strengthen the act include banning salary history inquiries entirely, enhancing pay transparency, and shifting the burden of proof from employees to employers to justify pay disparities. These changes aim to make it easier for employees to challenge pay discrimination and promote a more equitable work environment​.

These measures represent a significant step towards closing the wage gap in Alabama, ensuring fairer treatment for all employees regardless of gender or race. Contact The Justice Law Firm, LLC for a FREE consultation.