NYC Bans the Salary-History Question

NYC Bans the Salary-History Question

The New York City Council approved legislation that will ban employers from asking job applicants about what they make in their current or past job. This law is scheduled to go into effect 180 days after the mayor signs it, which means that it will likely become effective in October 2017.

The new law prohibits employers from: (1) inquiring about the salary history of an applicant for employment; (2) researching an applicant’s salary history; and (3) relying on the salary history of an applicant in determining the salary, benefits or other compensation for the applicant during the hiring process, including the negotiation of a contract.

Employers are still allowed to discuss with the applicant their expectations with respect to salary, benefits and other compensation. Additionally, where an applicant voluntarily and without prompting discloses salary history to an employer, the employer may consider salary history in determining salary, benefits and other compensation for the applicant, and may also verify such applicant’s salary history.

Over the next six months, we recommend you audit all on-boarding and hiring procedures and practices to prepare for compliance with the law.