A New York City job salary history law was recently passed, which goes into effect in October 2017. Business owners should be aware of this fact and ensure they keep their hiring practices in lockstep with the new change.
CNN Money reported that employers no longer are allowed to ask prospective job candidates about their previous salaries. According to Mayor De Blasio, the law hopes to lessen the gender pay gap that exists in salaries. At the signing ceremony, the mayor said, “This is about fixing a broken history. This is about overcoming years and years of discrimination that held people back.”
Why Job Salary History Questions Tend to Promote Unequal Pay
When a business bases its pay on previous salary history and the history is already unequal pay, it simply perpetuates the inequality.
This change speaks to the U.S. Census fact that in 2015, for every dollar men earned, women in comparable positions earned 79.6 cents.
What Changes Will Employers Have to Make?
They must eliminate any questions on job applications that ask about previous salary. They must train hiring managers to refrain from asking about job salary history and refocus the hiring interview on salary expectations instead.
To keep the hiring practice uniform, it’s possible that New York companies with offices in other cities may incorporate the change there as well.
New York Is Not Alone in This Change
According to the National Conference of State Legislatures, over 20 other states are also considering passing similar laws that would prohibit employers from inquiring about an applicant’s pay history.
At a federal level, The Paycheck Fairness Act is a proposed bill that bans employers from asking about a job candidate’s pay history during the interview process. This bill has been proposed by Senator Patty Murray of Washington and Representative Rosa DeLauro of Connecticut in an attempt to create stronger provisions in the Equal Pay Act of 1963.
Sometimes it is hard to keep up with all the regulatory changes that occur in the business world.
Legal Help for Business Owners
Our attorneys at Stephen Hans & Associates can help you stay current with regulatory changes. If you own a business and face employment or labor disputes, we can also provide you with seasoned legal advice and representation.