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: Earlier
this year, NY State banned state entities from asking applicants for their salary
histories or from evaluating candidates based on what they were paid in the
past. Prospective employees can only be asked to provide the information after
getting a job offer with compensation. Additionally, NY State lawmakers are
considering a bill that would prohibit private NY State employers from inquiring or requiring
salary history information from prospective employees.
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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