New York Releases FAQ on New Salary History Ban
New York has released its FAQ on the salary history ban currently effective state-wide. The FAQ provides some clarification on the major points to the new regulations. The important aspects of the FAQ are detailed below:
- An employer may not inquire into, either directly or indirectly, an applicant’s salary history (even as an optional question). This applies to monetary compensation, benefits, and other non-monetary compensation. An employer may not use salary history as a hiring factor or as a method of determining an applicant’s potential starting salary.
- An employer may not seek to obtain prior salary history of an employee or applicant through other sources of information. For example, a prospective employer may not inquire into the previous salary of an applicant by asking a previous employer as part of a reference check.
- An employer may not ask current employees about their salary history as a condition of consideration for promotion or other benefit.
- An employee may voluntarily disclose prior salary history to an employer provided that there was no prompting by the employer to do so.
- The law does not cover independent contractors or freelance workers unless they work through an employment agency.
This law applies to any position that has as its primary work location the state of New York, even if the employer is not located in the state itself. Employers should review their written materials as well as their interview procedures regarding hiring and promotions to ensure that there are no questions related to past salary or compensation. For added security, employers can affirmatively state that they neither need nor desire prior salary information on their application materials. You can read the entire FAQ HERE.