“Salary history bans” are increasingly being adopted by states and local jurisdictions, like an upcoming salary history ban in New York. We’re seeing the trend of salary history bands moving to New York’s neighbor next, the Eastern Seaboard state of New Jersey.
While the content and restrictions imposed by salary history bans differ between each state, county, or city that imposes them, these types of laws often restrict an employer’s ability to consider or ask about an employee or applicant’s previous salary history for employment purposes.
New Jersey is the latest state set to impose salary history consideration restrictions on employers.
Effective January 1, 2020, New Jersey’s salary history ban makes it an unlawful employment practice (with certain exceptions) for an employer to:
- Screen a job applicant based on the applicant’s salary history, including, but not limited to, the applicant’s prior wages, salaries or benefits; or
- Require that the applicant’s salary history satisfies any minimum or maximum criteria.
An employer may, however:
- Consider salary history in determining salary, benefits, and other compensation for the applicant, and may verify the applicant’s salary history, if the applicant voluntarily, without employer prompting or coercion, provides the employer with salary history. The applicant’s refusal to volunteer compensation information shall not be considered in any employment decisions.
- Request that an applicant provide the employer with a written authorization to confirm salary history, including, but not limited to, the applicant’s compensation and benefits, after an offer of employment that includes an explanation of the overall compensation package has been made to the applicant.
Verified Credentials will continue to monitor and attempt to provide updates regarding New Jersey’s salary history ban as they become available. Remember, it’s never a bad idea to discuss these upcoming changes with your legal counsel to ensure your hiring complies with applicable law.