NYC Law Updates for Pre-Employment Salary History

New York City Mayor Bill de Blasio has signed Int 1253-2016, a bill prohibiting employers from inquiring about a prospective employee’s salary history until a formal offer of employment including salary has been made. The bill easily passed the New York City Council earlier this month on a 47-3 vote, and becomes effective 180 days following Mayor de Blasio’s signature.

The bill specifically prohibits employers (or their agents) from:

    • Inquiring about an applicant’s salary history and/or

 

    • Relying on an applicant’s salary history in determining the salary, benefits or other compensation for that applicant during the hiring process, including as part of the negotiation of a contract

 

Employers may have concerns that background screening reports may occasionally include information about previous salaries. The new law in NYC has a provision specifically addressing this. It does so by saying the law would not apply to an attempt by an employer (or their agents) to verify an applicant’s disclosure of non-salary related information or conduct a background check. This is so, provided that if such verification or background check discloses the applicant’s salary history, such disclosure shall not be relied upon for purposes of determining the salary, benefits or other compensation of such applicant during the hiring process, including the negotiation of a contract.

For more details about this law, please read this helpful article by Proskauer.

In addition, Background Decision clients can review state-by-state legal resources by clicking on the state laws icon when logged into our background screening web portal. This helpful subscription is provided at no cost to Background Decision clients. To learn more, please contact us.