On May 5th 2017, New York City’s Mayor Bill de Blasio passed a bill prohibiting employers from inquiring about or relying on an applicant’s salary history. Under the local law, it is now considered illegal and discriminatory for an employer, employment agency, or employee to inquire about the salary history of a prospective employee and/or to rely on the salary history of a prospective employee in determining salary, benefits, or general compensation during the hiring process. Supporters of the new legislation expect that this regulation will assist in eliminating the gender wage gap by preventing discrimination against women who may receive lower salary offers due to their salary history.
Employers, employees, and employment agencies are permitted to discuss salary, benefit, and compensation expectations including deferred compensation or unvested equity. A candidate may voluntarily disclose salary history without prompting, which would then allow employers and employment agencies to consider and verify the candidate’s salary history. Exceptions include any agreements that authorize the verification or disclosure of salary history, and any instances where knowledge of salary history is required for internal transfer or promotion. The law is scheduled to go into effect on October, 31st 2017.
Do you have questions about how this new legislation will affect your employees or business? Contact one of our HR Business Partners to have your questions answered.