New law amends the New York City Human Rights Law and prohibits employers in New York City from asking about, relying on, or verifying a job applicant’s salary history during the hiring process.
Applicants will now be able to pursue claims against employers with either the New York City Commission on Human Rights or directly in court.
The law essentially prohibits employers from inquiring about an applicant’s salary history and/or relying on the salary of a job applicant when determining an applicant’s salary amount at any time during the employment process. Salary history is broadly defined to include not just wages, but benefits and other form of compensation.
What is still permissible under this law is employers are allowed to discuss proposed or anticipated salary and salary expectation. Employers may inquire about objective measures of an applicant’s productivity and whether or not the applicant will be forfeiting any deferred equity or compensation.
Employers may also consider an applicant’s salary history IF the applicant’s disclosure is made without prompting and is voluntary on their part. Penalties for non-compliance of this law include a civil penalty of up to $125,000 for an unintentional violation and up to $250,000 if the violation is willful and malicious.
