New York City’s Ban on Salary Inquiries Takes Effect October 31, 2017; Violations Could Cost Employers Big Bucks
On October 31, 2017, employers in New York City will no longer be able to inquire as to an applicant’s salary history. The New York City Human Rights Law, as amended, makes it an unlawful discriminatory practice for an employer to directly or indirectly make any inquiry of an applicant’s current or former salary. An employer is also prohibited from conducting a search of publicly available information to try to determine an applicant’s salary history.
The amendment also makes it unlawful for an employer to consider an applicant’s salary history in determining the salary, benefits, or other form of compensation for the applicant. However, if the applicant volunteers the information, the employer can use the information to determine the employee’s salary, benefits, and compensation.
The New York City Commission on Human Rights has the authority to issue steep penalties for employers who are not in compliance. An unintentional violation can cost an employer up to $125,000 and a willful, wanton, or malicious act can cost up to $250,000. The Commission can also bring a lawsuit against the Company for additional forms of relief.
Employers should immediately look at their hiring practices and employment applications to make sure they are in compliance with this new law. Since employers routinely inquire as to past salary on employment applications, a hard look at all of the documentation used in the hiring process must be immediately reviewed.
Brody and Associates regularly advises management on complying with state and federal employment laws including wage and hour laws. If we can be of assistance in this area, please contact us at email@example.com or 203.454.0560.