Come Oct. 31, 2017, employers in New York City will face a scary new reality: They will no longer be permitted to ask job candidates about their salary history. This mandate follows the New York City Council’s decision to pass legislation in April 2017 in an effort to address gender-based wage gaps. The law seeks to break the cycle of pay inequity by reducing the likelihood that women and people of color will be prejudiced by prior salary levels. Instead, the law encourages employers to set compensation based on applicants’ qualifications. For businesses new to this concept, here’s a “roadmap” of what is and is not permitted.

What conduct is prohibited under the law? On the effective date, it will be an unlawful, discriminatory practice under the New York City Human Rights Law (NYCHRL) to inquire about the salary history of a job applicant during the hiring process. This includes direct questions or statements to: the applicant, the applicant’s current or former employers and any search of publicly available records for the purpose of obtaining information about prior salary. The law also prohibits employers from relying on the pay history of an applicant in determining salary, benefits or other compensation during the hiring process. If a background check or verification of an applicant’s non-salary history-related information reveals this information, it cannot be relied upon for purposes of determining compensation.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]