Kara Sears
In New York City, it is illegal for employers to ask about an applicant's salary history during the hiring process. This includes all stages of the process, from advertisements for positions to interviews. The law also prohibits employers from seeking salary history information from other sources. This law was introduced to address the gender wage gap and promote fairness for all workers. It ensures that salary negotiations are focused on an applicant's qualifications and requirements for the job rather than their previous salary. However, there are certain exceptions to this law, such as when an employer is conducting a non-salary background check or when salary history is required by federal, state, or local law.
| Characteristics | Values |
|---|---|
| Applicability | Public and private employers of any size in New York City |
| Applicant | Someone who took an affirmative step to seek employment with the employer and who is not currently employed with that employer, its parent company or a subsidiary |
| Law | Employers cannot ask about an applicant's salary history during the hiring process, including in advertisements for positions, on applications, or in interviews |
| Exemptions | Salary history can be asked in case of internal transfers or promotions, or if the information is volunteered by the applicant, or if required by federal, state, or local law |
| Rationale | To break the cycle of inequity and discrimination in the workplace, which perpetuates lower salaries specifically for women and people of color |
Explore related products
What You'll Learn
Asking about salary history in interviews
In New York City, most applicants for jobs are protected by the NYC Human Rights Law, which came into effect on October 31, 2017. This law applies to employers of any size hiring in New York City. It prohibits employers from asking about an applicant's salary history, either orally or in writing, directly or indirectly, including questions about their current or past salary, compensation, or benefits. This law also applies to interviews held outside of New York City if the impact of the unlawful practice is felt within the city.
However, there are some exceptions to this law. Firstly, it does not apply to internal transfers or promotions within a company. Secondly, employers are permitted to ask about the salaries of public employees whose salaries are determined by a union contract or if required by federal, state, or local law. Additionally, applicants can voluntarily disclose their salary history to justify a higher salary, but this cannot be prompted by the employer. If an applicant does disclose this information, the employer may consider it when determining the salary for that person.
To comply with the law, employers should review their job applications and train their hiring staff to ensure they do not seek salary history information from applicants. Instead, they should focus on asking about an applicant's salary expectations, skills, and qualifications.
If an applicant believes their rights have been violated under this law, they can file a complaint with the Department of Labor or report the violation to the Commission and may be able to recover damages.
Gaslighting in California: Spousal Filming and the Law
You may want to see also
Explore related products
Salary history as a factor in promotion decisions
In New York City, the law prohibits employers from asking about an applicant's salary history during the hiring process. This includes asking the applicant directly, asking their former employer, or obtaining the information through other means. However, the law does not restrict employers from considering salary history when making internal promotion decisions.
While NYC law does not restrict the use of salary history in internal promotions, New York State law does. According to state law, employers cannot request prior salary history information from current employees as a condition of being considered for a promotion. However, employers may consider salary information already in their possession for existing employees, such as their current salary or benefits. Additionally, employees can voluntarily disclose their salary history to justify a higher salary or wage, but employers cannot prompt them to do so.
Despite these legal protections, there is a stigma around negotiating salaries, especially for internal promotions. Employees may fear being perceived as greedy or ungrateful if they ask for more than what is initially offered. This cultural factor can make it challenging for employees to advocate for higher salaries during promotion discussions.
When considering a promotion, it is essential to evaluate your history with the company. Employers typically prefer to promote loyal and trusted employees. Highlighting your commitment, positive reputation, and the additional value you bring to the company through acquired skills or expertise can strengthen your case for a promotion and a higher salary. It is also important to remember that companies often have more flexibility when hiring externally than when promoting internally due to budget constraints.
Lawyers and Their Legal Practice Specialization: A Comprehensive Guide
You may want to see also
Explore related products
$12.61 $25.99
Salary history of temporary employees
In New York City, the law prohibits employers from asking about an applicant's salary history in applications, interviews, advertisements, or during any part of the hiring process. This includes temporary employees.
Effective January 6, 2020, Labor Law Section 194-a prohibits employers from asking about an applicant's salary history, either orally or in writing, directly or indirectly, or through an agent. This law applies to all public and private employers in New York City and State, including temporary workers, regardless of their immigration status.
However, there are some exceptions to this law. If an applicant voluntarily discloses their salary history information without prompting, the employer may consider this information when determining the salary for that person. Additionally, if the employer is considering a temporary employee placed through a temp agency for a permanent position, the law may not apply. If the temp agency and employer are joint employers, the hire would be considered an internal transfer, and the law would not apply. In this case, the employer can use the amount charged by the temp agency to determine the value of their offer of permanent employment, but they cannot ask what the temporary employee is being paid by the agency.
Employers should review their job applications and train hiring personnel to ensure compliance with the law. They may also wish to state in job postings that they do not seek salary history information from applicants. Applicants are protected under the law from retaliation for refusing to provide their salary history or complaining about potential violations.
Who Needs a Lawyer? Understanding Probate Law Requirements
You may want to see also
Salary history in the context of company acquisition
In New York City, the law prohibits employers from asking about a job applicant's salary history at any point during the hiring process. This includes asking questions orally or in writing, and of the applicant or their former employer. If employers obtain salary information by other means, they cannot use it to determine whether to hire the applicant or what salary to offer. However, employers are permitted to ask about the salaries of public employees whose salaries are determined by a union contract. The law also does not apply if there is a local, state, or federal law that requires employers to track the salary history of their employees.
In the context of company acquisition, the employees of the target company are not considered "job applicants", and therefore, the acquiring company can obtain salary information as part of the due diligence process. The acquiring company may rely on this salary history information when making compensation and structural decisions on a non-individualized basis. However, if employees of the target company are interviewed for positions with the acquiring company, the salary history law may be implicated, and it is recommended that any salary information disclosed during the acquisition due diligence process be kept confidential from hiring managers.
Company acquisitions can have varying financial outcomes for employees. While some acquisitions may result in windfalls for employees, others may not. The specific circumstances of each acquisition will determine the optimal compensation program design. During the due diligence process, the acquiring company should understand the retention hooks that will remain in place following the acquisition, including the potential cost of additional incentives, equity, and severance benefits needed to retain key talent.
Additionally, the acquiring company should develop an integrated salary structure, taking into account the headcounts and compensation levels by business unit, level, and geographic location. They should also address titling conventions and determine if there are inconsistencies in the span of responsibilities associated with different job titles. If inequities exist, an action plan should be developed to achieve uniformity.
How Government Laws Influence Private Businesses
You may want to see also
An applicant's rights and recourse
In New York City, it is illegal to ask a job candidate their current salary. However, employers can speak with applicants about their expected salary and desired benefits. If an employee voluntarily discloses their salary history, the employer is permitted to consider this information when determining the new applicant's salary and benefits.
If an employer conducts a non-salary background check and discovers a past salary, this is allowed under the law, but they cannot use this information to determine whether or not to hire an applicant or what salary to offer. Similarly, if an employer discovers an applicant's salary through other means, they cannot rely on this information to decide whether or not to offer employment.
If an applicant's rights are violated under this statute, they can file a complaint with the Department of Labor. However, it is important to note that simply reminding the interviewer of the law may not be enough to stop them from asking about your current salary, and pushing back may result in not being hired.
Instead of engaging in legal discussions, applicants can choose to focus on their desired salary. For example, they could say something along the lines of: "I don't want to violate the confidentiality expectations of my current employer. But given the role, the current salary landscape, and my experience level, I'm looking for something in the [high-end range]."
Carrying ID in Canada: What the Law Says
You may want to see also
Frequently asked questions
No. NYC law prohibits employers from asking about an applicant's salary history during the hiring process, including in advertisements, applications, or interviews. This law applies to both public and private employers.
The employer may factor in that information in determining the salary for that person. However, employers cannot request prior salary history from current employees as a condition of being interviewed or considered for a promotion.
Yes. The law governs the hiring context and does not address inquiries about salary history made after an individual has been hired and is currently employed.
