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.

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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:

Distribution of Funds – No portion of wage parity funds shall be returned to the employer in any form under any circumstance
Certification Required – Providers must provide annual written verification under oath regarding compliance with Wage Parity rules and regulations
Annual Compliance statement – a detailed accounting of wage parity hours and expenses on a form provided by the New York Department of Labor (NYDOL), accompanied by an independently-audited financial statement
Transparency – home care workers must be provided with information regarding their Wage Parity funds, including the info of the company administering said benefits and how funds are broken down

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.

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