What is Wage Parity?
Wage Parity is a law that was initially passed in 2012. The purpose was to give home care workers additional compensation, which contributed to a higher living wage. The additional compensation can be in the form of salary, benefits, or a combination of both.
There are two wage parity zones, which are based on where the patient resides. The minimum wage in each zone determines the total compensation due to an aide for each hour worked.
|Zone||Minimum Wage||Wage Parity Amount||Total Compensation|
|1 – NYC / 5 Boros||$15.00||$4.09||$19.09|
|2 – L.I./Westchester||$14.00||$3.22||$17.22|
In April 2020, NY passed sweeping reforms to the law. Included in these reforms are additional oversight and reporting of wage parity dollars that agencies must comply with.
A summary of the changes:
For additional information regarding the Wage Parity Law updates, please visit the New York Department of Labor website.
Penalties for Violations
Substantial changes have been made to the penalties for violating the Wage Parity Law.
- Potential perjury – any party that knowingly verifies a false statement under oath can face a perjury charge
- Fines / Jail time – 1st offense: $500; not more than 30 days in jail; or both / 2nd offense: $1,000 and forfeiture of the contract where the violation occurred and all payments under that contract
Our clients rest easier knowing that they have all of the resources required to keep them compliant through our proprietary database.