Employers Can Not Ask About Salary History

Beginning January 1, employers in New Jersey are barred from asking or relying on an applicant’s salary history when making hiring determinations. The new law prohibits employers from requesting or using an applicant’s salary history when deciding whether to hire the applicant or in pay-setting situations. If you believe that an employer used your salary history to decide whether to hire you or to set your wages, you may have a legal claim. To speak with an experienced New Jersey employment attorney about your case, call or contact Trabosh Employment Law today to schedule a free consultation of your case.

New Jersey’s New Salary History Law

This new law bans employers in New Jersey from screening job applicants based on their wage, salary, or benefits history in addition to barring the requirement of a salary history to meet minimum or maximum salary criteria for a position. An employer cannot require that job candidates disclose their past salaries; however, if an applicant voluntarily informs the employer of this information the employer is allowed to verify their salary history and factor it into pay-setting decisions.

It is important to note that the new law does not apply to internal transfers or promotions, nor does it apply if an employer knows an applicant’s salary history through prior employment with the business. Any federal requirements of salary disclosures also trumps the new law in New Jersey. An employer is also allowed to inquire whether a job applicant has any experience with incentive or commission plans, but under the new law the employer is not allowed to ask a candidate what their earnings were from those plans.

Employers who violate the new law banning salary histories are subject to fines ranging from $1,000 to $10,000 for first and subsequent violations. Employers may also face additional consequences through civil actions filed by job applicants and under the New Jersey Law Against Discrimination.

Expansion on Existing New Jersey Laws

The new law banning an employer’s request for a salary history from job candidates is an expansion on existing laws in New Jersey. In 2018, the New Jersey Equal Pay Act was passed into law that prohibited an employer from paying an employee of a protected class less than other employees with similar job duties unless the employer could prove a legitimate business purpose for doing so. The ban on salary histories also closes the loophole in the Equal Pay Act that failed to address an employer’s request into an applicant’s compensation or benefits. This may help close the gap on pay disparities between employees in New Jersey businesses.

Call or Contact Our Office Now

If you would like to learn more about the new law banning employers from inquiring about your salary history, or if you believe that you have a case against an employer who required a salary history for your job application, talk to an expert in New Jersey employment law today. Call the office or contact us at Trabosh Employment Law to schedule a free evaluation of your case now.

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