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New Jersey Salary History Ban Law

The City will not seek or rely on salary history to determine wages unless an applicant knowingly and willingly discloses salary history. The City will encourage vendors who do business with the City to adopt similar standards, and may consider vendors` wage standards when deciding whether to award municipal contracts. On February 6, 2020, the U.S. 3rd Court of Appeals ruled that Philadelphia could enforce its salary history ban and lift a lower court`s injunction. The City of Philadelphia announced on August 6 that its Human Relations Commission (HRPC) will begin enforcing the payroll history ban on September 1, 2020. Employers are not allowed to request candidates` salary history. If this information is provided voluntarily, employers cannot confirm it until a job offer has been made. Illinois` governor said the state would no longer ask potential employees about salary history. consideration and/or review of salary history when a candidate voluntarily provides a salary history to the employer, without the employer`s request or coercion; Employers across the country should contact NYC to obtain the law prohibiting salary history under any federal law that requires disclosure or review of salary history for employment purposes or to determine an employee`s compensation. Departments cannot request a candidate`s salary history until a conditional offer of employment has been renewed. You also can`t ask a current or previous employer or search public databases to determine a candidate`s current or past salary. Information already known or accidentally discovered may not be taken into account. An employer can only obtain information about a potential employee`s salary history after a job offer has been negotiated.

Seventeen states and 19 localities have some sort of ban on salary history. Several bans were introduced last year, including in Alabama, Cincinnati, Colorado, Kansas City, Missouri, New York, Maine and Washington state. The City will not seek salary history, nor will it select candidates based on their current or past salary, compensation or other benefits. The city will not rely on salary history to set salaries or decide whether or not to offer a job to a candidate. Once a job offer has been made, a candidate can offer a salary history to negotiate a higher salary. As the New Jersey law shows, there is no model or model law for wage history bans, as each law is unique in terms of coverage, prohibitions, and exemptions. Require a candidate to provide the employer with written permission to confirm the applicant`s salary history, including but not limited to the applicant`s compensation and benefits, after an offer of employment has been made to the applicant that includes an explanation of all compensation; Proponents of the measures say questions about pay history perpetuate wage discrimination against women and minorities, who would be paid less from their first job. Proponents argue that the wage gap will continue in consecutive jobs because previous salary information is taken into account when a new compensation offer is made. On July 25, 2019, Acting Governor Sheila Oliver signed NJ A1094 (the “Act”) prohibiting New Jersey salary history investigations. In keeping with the growing trend, New Jersey joins the ranks of many other cities and states that have enacted wage history bans to address wage inequality.

The law does not apply to internal candidates with respect to promotions or transfers. As a result, employers can consider the salary information of candidates who are already working at their company. In addition, employers may consider salary history if a candidate has previously worked for them, but only information they have already stored. Employers should consider appointing (or consulting with an employment consultant) an employee with expert experience on the subject to learn more about wage history investigation prohibitions, as well as the full range of state and local laws that affect compliance with hiring regulations, such as the Fair Credit Reporting Act, prohibition laws and equal opportunity laws, credit check bans, bans on social media inquiries, revised pay equity laws and others. Employers cannot request a candidate`s salary history unless it has been voluntarily disclosed. On July 25, 2019, New Jersey Lieutenant Governor Sheila Oliver signed a law prohibiting employers from vetting applicants for employment in New Jersey based on their salary history, including but not limited to their previous salaries, commissions or benefits, effective January 1, 2020. Employers may also not require candidates to meet minimum or maximum salary histories. If a candidate provides their salary history “voluntarily, without request or coercion by the employer,” the employer can consider and verify this. However, a candidate`s refusal to voluntarily provide this information cannot be taken into account in recruitment decisions. New Jersey employers can still confirm a candidate`s salary history with the candidate`s written approval following a job offer that includes an explanation of total compensation. In particular, the law also prohibits employment agencies from disclosing this information to employers without the express written consent of the applicant.

Employers are subject to civil penalties of up to $1,000 for a first violation, up to $5,000 for the second violation, and up to $10,000 for each subsequent violation, which can be collected in summary conviction by the New Jersey Commissioner of Labor and Workforce Development. Employers are not allowed to search for salary history. However, you can confirm this information if the applicant discloses it voluntarily or if an offer has been extended. Employers cannot ask for or rely on candidates` salary history when deciding to offer a job or determine salaries, benefits or other compensation during the hiring process. Employers may ask questions about the applicant`s expectations for salary, benefits and compensation. The prohibitions in the Act do not apply to the voluntary and unsolicited disclosure of salary history information by an applicant. On July 25, New Jersey Lieutenant Governor Sheila Oliver signed Bill A1094. Like other recent laws that restrict salary background investigations, New Jersey law prohibits employers from vetting applicants based on their salary history, which includes previous wages, salaries and benefits. Legal experts say the wage history ban fills a gap in the state`s equal pay law, where the law does not clearly regulate whether employer investigations into a potential employee`s pay or performance are allowed.

The city is not allowed to ask applicants for their salary history until they have been hired at an agreed salary. In addition to recently introduced wage history bans, New Jersey private employers will also have to comply with a wage history ban in 2020.

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