Recent NYC Law Bans Employer Inquiries & Reliance on Salary History

The New York City Council recently passed a bill banning New York City employers (with four our more employees) from requesting or asking about an applicant’s salary history or relying on an applicant’s salary history in determining the applicant’s salary, benefits or other compensation. The bill takes effect 180 days after it becomes law following Mayor Bill de Blasio’s expected signature.   

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Employers are still permitted to discuss with an applicant their expectations with regards to salary and or benefits but must do so without directly inquiring about salary history. If an employer inadvertently learns of salary information during the employment verification process, the information cannot be relied on for the purposes of determining salary, benefits or other compensation of applicant during the hiring process. One exception to the law is that if employees or applicants voluntarily and without prompting disclose salary history to an employer, the employer may verify the information provided by the applicant.

T&M's Business Intelligence & Analysis division frequently advises businesses and organizations during the hiring and onboarding process. We recommend that human resources departments and any other personnel involved in the hiring process are made aware of the new law and what it entails and now prohibits.  

*The foregoing is not intended as legal advice, does not constitute legal advice and should not be relied upon as legal advice. We are bringing the new law to your attention as a courtesy and in that regard we are including herein a copy of the bill that was passed by the New York City Council for your reference. We suggest you discuss this with your legal counsel.