New York City One Step Closer To Banning Employers From Asking About And Considering Prospective Employees' Salary History

Mayor Bill de Blasio expected to sign the law, adding to the city's growing list of unlawful discriminatory practices in employment.

On  April  5,  2017,  the  New  York  City  Council  overwhelmingly  approved  a  bill  amending  the  NYC  Administrative  Code  to prohibit  employers  from  inquiring  about,  or  relying  on,  a  prospective  employee's  salary  history.

The   law,   which   will   become   effective   120   days   after   it   is   signed,   contains   two   main   prohibitions.   Employers   and employment  agencies  (including  employees  or  agents  thereof) may not:

1. inquire,  in  writing  or  otherwise,  about  a  job  applicant's  salary  history;  and/or
2. rely  on  a  job  applicant's  salary  history  in  determining  the  applicant's salary  at  any  stage  of  the  employment  process  unless  the  applicant,  unprompted, willingly  disclosed  the  salary  history.

A limited exception applies to circumstances where applicable law authorizes the disclosure or verification of salary history for  employment  purposes.  Notably,  the  law  is  limited  to  job  applicants,  and  does  not  facially  apply  to  existing  employees transferred   or   promoted   to   new   internal   positions.   The   law   does   not   prohibit   discussion   of   an   applicant's   salary expectations.  The  NYC  Commission  on  Human  Rights  will  enforce  the  new  law,  but  penalties  for  violations  have  yet  to  be determined.

The  law  has  been  touted  as  another  step  to  address  gender  pay  inequality.   It  is  intended  to  focus  hiring  based  upon  skill and ability, and market compensation for the role without considering an applicant's potentially gender-deflated prior salary.

Employers   should   immediately   review   and   revise   their   form   applications,   interview   processes,   reference   and   back-ground/credit  check  procedures  to  ensure  the  questions  and  topics  covered  do  not  implicate  disclosure  of  an  applicant's salary history.   Additionally, employers are well advised to confirm with engaged outside recruiters and placement firms to prevent  unauthorized  disclosure  of  prohibited  applicant  information.

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