New Jersey has become the most recent state to ban salary history inquiries during the hiring process.
Effective in early 2020, New Jersey employers will no longer be legally allowed to inquire about a job applicant’s prior compensation.
Connecticut and New York have similar laws in place.
As JD Supra explains:
“The new law states it is an “unlawful employment practice” for an employer to (1) screen a job applicant based on the applicant’s salary history, which includes prior wages, salaries, or benefits, or (2) to require the applicant’s salary history satisfy any minimum or maximum criteria…Employers cannot consider an employee’s refusal to voluntarily provide compensation information in making any employment decisions.”
The state promises to levy steep fines for violations.
The penalty for the first violation will be $1,000, increasing to $5,000 for the second violation, and $10,000 for each violation thereafter.
For more information about how New Jersey employers should prepare for the salary history ban, please click here.
The information included in this blog post originally appeared in an article from JD Supra on July 30, 2019 written by Ruth A. Rauls and Rebecca Reist of Saul Ewing Arnstein & Lehr LLP.