On May 4,
2017, Mayor de Blasio signed a bill into law aimed at eliminating the wage gap
between men and women. When the law goes
into effect on October 31, 2017, it will be an “unlawful discriminatory
practice” for NYC private employers to ask for salary history information from an
applicant, an applicant's current or former employer, or from an employee or
agent of that employer. Employers will also be prohibited from conducting
any form of search through publicly available information for a prospective
employee’s salary history. The employer may not consider an applicant’s
salary history in determining the salary, benefits, or other forms of
compensation for that applicant. “Salary history” includes not only an
applicant’s current or prior wage, but also benefits and any other form of
compensation he or she may have received.
A: In 2016, the NJ Senate and Assembly passed a bill that would prohibit employer inquiries into salary history. In early 2017, the New Jersey Senate failed to override Governor Christie’s conditional veto of that bill.
UPDATE -
Effective February 1, 2018, NJ state
agencies are prohibited from asking a job applicant for past wage
history
unless or until a conditional offer of employment, including an
explanation of
the overall compensation package, has been extended. State agencies
also are
forbidden from investigating or researching prior salaries of
applicants. An
agency may request or verify current or previous compensation
information prior
to a conditional job offer only if an applicant volunteers such
information or
if verification is required by federal, state or local law. An agency
that
obtained salary history information prior to the effective date of the
Executive Order is prohibited from using that information in any
employment
decision unless required to do so by law or collective bargaining
agreement. As of January 2018, there is no similar law that
applies to private NJ employers.
Take Away:
NYC private
employers should update their job applications, review and revise their
background check forms and phone screen and interview materials and train staff
for compliance. Questions regarding salary history must be eliminated.
Anyone involved in the recruiting and hiring process should be trained as to
the law’s requirements, including ways to avoid claims that salary history was
disclosed involuntarily or at the prompting of the interviewer. A process for
documenting when an applicant voluntarily discloses salary history and other
compensation information should be implemented. Employers in NJ and areas
outside of NYC may also want to take similar steps over the coming months as
this is a trend that is likely to come their way.
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