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'How much do you make?' Salary history ban creates new taboo question

February 2020 employment law letter
Authors: 
Paul J. Sweeney and Angelo D. Catalano, Coughlin & Gerhart, LLP

It has always been considered rude to ask friends and family about their salaries, but such a question used to be pretty standard fare when an employer interviewed job applicants. In 2019, the New York Labor Law (NYLL) was amended to add a section prohibiting an employer from asking a job applicant about her salary history. The law also applied to current employees as well as to the salary history information the employer already had in its possession before the effective date of the law. Not surprisingly, the new law resulted in many unanswered questions. The New York State Department of Labor (NYSDOL) recently provided some guidance on how to implement the new law.

Background

NYLL § 194-a, which was intended to counter wage disparity prejudicing women, went into effect on January 6, 2020. The law prohibits an employer from relying on the wage or salary history of a job applicant or current employee in determining whether to interview, offer employment to, or determine the wages or salary for the individual upon hire or promotion.

However, the law doesn't prohibit an applicant or current employee from volunteering wage and salary history during the job interview to negotiating a better wage or salary. Nor does it stop an employer from verifying volunteered wage or salary history information after a job offer is made.

In addition to private-sector employers, the law applies to public-sector employers whose wage and salary information is public record. Finally, the term "applicant" covers full-time, part-time, seasonal, and temporary workers—it doesn't apply to bona fide independent contractors.

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