Salary History Ban: Update

This article was originally published on January 23rd, 2019, and updated on July 13th, 2020.

InCheck previously reported on the growing trend of salary history ban legislation back in early 2018. Since that post, salary history ban legislation has continued to pick up steam and additional jurisdictions have adopted such laws. Below is an overview of some of the most recent jurisdictions to adopt salary history bans and how the law applies in those jurisdictions.

Please note, this is not an all-inclusive list, but rather an overview of the most recent salary ban updates. Additionally, this overview is simply InCheck’s interpretation of salary history ban laws by jurisdiction, and should not be construed as legal advice.  Please consult your legal counsel to review your hiring practices and build a compliant hiring process.

New Jersey A1094 – Effective Date: 01/01/2020

This law prohibits employers from screening candidates based on their pay history. Employers may not require that an applicant’s prior wages, salaries or benefits meet minimum or maximum criteria. If an applicant voluntarily, without employer prompting or coercion, discloses pay history, an employer may verify the applicant’s pay history and may also consider pay history in determining the applicant’s salary, benefits and other compensation. After an offer of employment that includes an explanation of the overall compensation package has been made to the applicant, an employer may request the applicant provide the employer a written authorization to confirm pay history.

New York Labor Law Section 194 – Effective Date: 01/06/2020

Employers are prohibited from seeking pay history.   Employers may only confirm pay history if a candidate or current employee responds to an offer by providing pay history to support a wage or salary higher than that which is offered by the employer.

Philadelphia Wage Equity Ordinance – Effective Date: 02/07/2020

This ordinance does not allow employers to inquire about a prospective employee’s wage history, require disclosure of wage history, or condition employment or consideration for an interview or employment on disclosure of wage history.  Employers may not retaliate against a prospective employee for failing to comply with any wage history inquiry.  Employers may not rely on the wage history of a prospective employee from any current or former employer of the individual in determining the wages for such individual at any stage in the employment process, including the negotiation or drafting of any employment contract unless such applicant knowingly and willingly disclosed his or her wage history.

City of Cincinnati, OH – Effective Date: 03/12/2020

This act does not permit pre‐offer inquiries into an applicant’s compensation history. Post‐offer inquiries into an applicant’s compensation history may occur if contract negotiations are no longer occurring.  Prospective employers may not seek to confirm unprompted voluntary disclosure of an applicant’s compensation history after making an offer of employment. A prospective employer may not consider publicly available compensation history. Lastly, the prospective employer may verify an applicant’s compensation history with a former employer if the applicant voluntarily discloses the information.

Toledo, OH Pay Equity Act – Effective Date: 06/25/2020

This act prohibits employers from asking candidates for their salary history.  Employers also may not screen candidates based on their salary history or require that their salary history, benefits, or other compensation meet the minimum or maximum criteria.  Employers may discuss pay expectations with a candidate.

Colorado Equal Pay for Equal Work Act – Effective Date: 01/01/2021

This act prohibits employers from asking about a candidate’s pay history.  Employers cannot rely on pay history to determine compensation.  Employers may also not discriminate or retaliate against a prospective employee if they do not disclose their pay history.    

Hawaii Effective Date: 01/01/2019

This law prohibits pre-offer inquiries into an applicant’s compensation history and does not permit employers to consider publicly available salary history information. However, prospective employers may consider unprompted voluntary disclosure of an applicant’s compensation history. The law is silent on whether a prospective employer may confirm salary history with an applicant’s previous employer. In this situation, prospective employers should consider the most conservative approach.

 

Westchester County, NY Effective Date: 07/09/2018

This law prohibits pre-offer inquiries into an applicant’s compensation history. A prospective employer may consider compensation history if an applicant voluntarily discloses without prompting and only after a conditional employment offer has been made. A prospective employer may not verify compensation history with a former employer unless the prospective employer has written authorization from an applicant and a conditional employment offer with compensation has been negotiated and made. The law is silent on whether a prospective employer may consider publicly available compensation history. In this situation, prospective employers should consider the most conservative approach.

 

Connecticut Effective Date: 01/01/2019

This law prohibits pre-offer inquiries into an applicant’s compensation history. Prospective employers may ask, directly or through a third party, about an applicant’s compensation history if the prospective employee volunteers the information. A prospective employer may not verify compensation history with a former employer unless an applicant voluntarily disclosed his or her compensation history. The law is silent on whether a prospective employer may consider publicly available compensation history. In this situation, prospective employers should consider the most conservative approach.

 

Vermont Effective Date: 07/01/2018

This law prohibits pre-offer inquiries into an applicant’s compensation history. A prospective employer may consider compensation history if an applicant voluntarily discloses without prompting and only after a conditional offer has been made. After an offer of employment has been made to an applicant, a prospective employer may verify an applicant’s compensation history with a former employer. The law is silent on whether a prospective employer may consider publicly available compensation history. In this situation, prospective employers should consider the most conservative approach.

 

Disclaimer: This blog is for general informational purposes only and should not be construed as legal advice.