On May 4, 2017, Mayor Bill de Blasio signed a New York City Council bill that prohibits employers from inquiring about a prospective employee’s “salary history” during any stage of the employment process. In addition, the new law prevents employers, who happen to be aware of a job candidate’s salary history, from relying on it in making compensation determinations. The law is aimed at eliminating gender wage gaps, but protects all job applicants, regardless of gender.
The law defines “salary history” broadly to include all wages, benefits or other compensation, but does not include inquiring into a prospective employee’s revenue, sales, or other production reports. Although employers will not be permitted to ask applicants what they were paid in prior jobs, they are permitted to inform applicants about the job position’s proposed or anticipated salary. In addition, employers and job candidates can discuss compensation expectations as long as there is no disclosure of prior salary history.
The Local Law amends the Administrative Code of the City of New York, and the New York City Commission on Human Rights will likely issue regulations and guidance to further the law’s purpose. The law will take effect on October 31, 2017. Stay tuned for more developments.