Please Be Advised: December 2019 Compliance News
New Jersey Salary Ban: January 1st!
On January 1st, 2020, New Jersey’s Diane B. Allen Equal Pay Act law goes into effect. Essentially, the new law prohibits an employer from an applicant their salary. The law also achieves its goal by amending New Jersey’s Law Against Discrimination.
Here are a few aspects of the new law to be aware of:
- Employees can voluntarily disclose their salary information at any stage of the application process as long as they are not coerced into doing so.
- Employers cannot establish maximum and minimum salary rates and disqualify candidates based on that.
- Individuals seeking internal promotions can be asked their salary history
- An employer can ask the employee’s salary history AFTER an offer has been made; however, they cannot use an employee’s refusal to grant permission as part of the basis for making the hiring decision.
- If Federal law requires the information, then the employer may ask.
- Employment agencies cannot share an employee’s compensation history.
- An employer who conducts background checks must specify on its form and through its process that salary information is to be excluded. If an employer learns salary information despite its notice, it cannot use that information.
New York and Delaware already have similar laws impacting private employers. Pennsylvania also has a salary history ban; however, it only affects State employees.
References:
US Salary History Ban Laws:
https://www.hrdive.com/news/salary-history-ban-states-list/516662/
Employers will be Banned From Asking About Your Salary History:
https://www.nj.com/politics/2019/07/employers-will-soon-be-banned-from-asking-about-your-salary-history-in-job-interviews.html
New Jersey Joins Salary “Ban” Wagon:
https://www.duanemorris.com/alerts/new_jersey_joins_salary_history_ban_wagon_0819.html
