Category: Salary

In the past we reported about the restrictions placed on employers from asking job applicants for salary history. We are again reminding you that employers must know the laws in each and every jurisdiction where they do business, where their applicants and employees reside, and even where they are interviewed.

Salary history bans attempt to end pay discrimination. Different jurisdictions have outlawed pay history questions in one form or another. There have been 11 state-wide bans and 9 local bans. It’s the law and we want to help you avoid the penalties. Below is a list of the jurisdictions with a salary history ban.

Helpful Tips:

This development continues to follow the trend of the pay-equity movement taking place in cities and states nationwide.   As we’ve suggested in the past, because there is a new national focus on prior salary history information, employers should be mindful of these new restrictions and evaluate how new legislation may impact them.  For additional information, please contact NCS.

Employment counsel should be consulted. Information including sample documents should NOT be construed as legal advice, guidance or counsel. It is for educational purposes only. Employers should consult their own attorney about their compliance responsibilities under the FCRA and applicable state and local laws. National Credit and Screening Co., LLC expressly disclaims any warranties or responsibility or damages associated with or arising out of information provided.

Two weeks ago, we reminded you of the restrictions regarding the use of credit checks by employers on applicants and employees. This week we are reminding you of the restrictions placed on an employer from asking job applicants for salary history. Again, we remind you that employers must know the laws in each and every jurisdiction where they do business, where their applicants and employees reside and even where they are interviewed.

As we reported in November 2017, on January 1, 2018 the California Salary History Disclosure law went into effect. California joins Delaware, Puerto Rico, Oregon, Massachusetts, New York counties of Albany and Westchester, New York City, Philadelphia (pending legal challenge), and its own city of San Francisco, in prohibiting employers from asking job applicants for salary history information. Also, effective July 1, 2018, Vermont, and effective January 1, 2019, Connecticut and Hawaii, passed their respective laws prohibiting employers from obtaining and using past salary history.  Finally, please be aware that many city and state offices and agencies cannot ask about past salary history.

The new California law also makes California the first jurisdiction in the country to require that employers provide applicants with the pay scale for a position, upon “reasonable request.”

This development follows the trend of the pay-equity movement taking place in cities and states nationwide.   As we’ve suggested in the past, because there is a new national focus on prior salary history information, employers should be mindful of these new restrictions and evaluate how new legislation may impact them.

Employment counsel should be consulted. Information including sample documents should NOT be construed as legal advice, guidance or counsel.  Employers should consult their own attorney about their compliance responsibilities under the FCRA and applicable state and local laws.  National Credit and Screening Co., LLC expressly disclaims any warranties or responsibility or damages associated with or arising out of information provided.

On January 1, 2018 the California Salary History Disclosure law went into effect. California joins Delaware, Puerto Rico, Oregon, Massachusetts, New York City, Philadelphia (pending legal challenge) and its own city of San Francisco in prohibiting employers from asking job applicants for salary history information. Also, effective July 1, 2018, Vermont passed their law prohibiting employers from obtaining and using past salary history.

The new California law also makes California the first jurisdiction in the country to require that employers provide applicants with the pay scale for a position, upon “reasonable request.”

This development follows the trend of the pay-equity movement taking place in cities and states nationwide. Given the new national focus on prior salary history information, employers must be mindful of your state’s restrictions and evaluate how new legislation may impact them.

Employers must know the laws in each and every jurisdiction where they do business, where their applicants and employees reside and even where they are interviewed. Visit your your state’s employment commission website for additional resources.

Employment counsel should be consulted. Information including sample documents should NOT be construed as legal advice, guidance or counsel.  Employers should consult their own attorney about their compliance responsibilities under the FCRA and applicable state and local laws.  National Credit and Screening Co., LLC expressly disclaims any warranties or responsibility, or damages associated with or arising out of information provided.

A Quick Memo…

On May 4, 2017, New York City Mayor Bill de Blasio signed into law the legislation that bans New York City employers from inquiring about or seeking the salary history of job applicants (see our   A QUICK MEMO…   dated April 8, 2017).  The law will go into effect on Halloween, October 31, 2017.  While the wording of the law may suggest that the City Commission on Human Rights must issue regulations before the law can take effect, both the Mayor and the Commission issued statements indicating that the effective date will be 180 days from the Mayor’s signature.

It remains to be seen whether the New York City law will face the same legal challenges as its Philadelphia counterpart. Last month, the Chamber of Commerce for Greater Philadelphia filed a federal lawsuit against Philadelphia’s pay equity Ordinance, which similarly prohibits inquiries into salary history. See our   A QUICK MEMO…   dated April 27, 2017.

Helpful Tips:

With the impending city and state law bans not only in NYC and Philadelphia, and but also in   Massachusetts  and Puerto Rico that will forbid or limit an employer’s inquiry into prior salary, the California Fair Pay Act prohibition on using prior salary as the sole justification for pay differences , and even   splits within the federal Circuits on the use of prior salary , all employers who consider prior salary in setting initial compensation – not just those with operations in NYC – are wise to carefully consider the above and consult legal counsel as they approach what to pay.

Employment counsel should be consulted. Information including sample documents should NOT be construed as legal advice, guidance or counsel. Employers should consult their own attorney about their compliance responsibilities under the FCRA and applicable state and local laws.  National Credit and Screening Co., LLC expressly disclaims any warranties or responsibility or damages associated with or arising out of information provided.