Beyond “Ban the Box”: Salary History Ban Passed in New York State

At this point, you may be familiar with the recent trend of “ban the box” laws popping up throughout many states and cities. Typically enacted by state or local governments, these laws often prevent employers from asking about an applicant’s criminal history early in the hiring process.

Did you know that some jurisdictions are going beyond “ban the box” and restricting questions on salary history? We’re starting to see an increase in states and cities that are adopting new “salary history ban” laws. These types of requirements may restrict an employer’s ability to consider or ask about an employee or applicant’s previous salary history for employment purposes.

The State of New York is one of the latest jurisdictions to pass a “salary history ban” law. Signed by Governor Cuomo on July 10, 2019, the new law with restrictions on salary history questions goes into effect on January 6, 2020. With certain exceptions, the new law prohibits employers from:

• • Using wage or salary history of an applicant to determine whether to offer them employment or in determining their wages or salary.
  • Requiring wage or salary history from the applicant or employee as a condition of employment, promotion, interview, or job offer.
  • Requesting an applicant’s wage or salary history from a current or former employer, its agent, or its employee.
  • Refusing to interview, hire, promote or otherwise employ or retaliating against an applicant or current employee based on prior wage or salary history, because they did not provide wage or salary history in accordance with the law, or because they filed a complaint with the State’s department of labor alleging a violation of the law.

To read the full text of the law, click here.

There is still time to determine how this law may impact you and your hiring process before it goes into effect in January 2020. Verified Credentials will continue to monitor and provide updates regarding the law. Remember that it’s never a bad idea to talk with your legal advisors to ensure that your hiring process meets all your obligations and requirements.