A part of the hiring process for many employers involves asking applicants about their prior salary and compensation information. Employers might use this information in deciding whether to make an offer to a particular candidate and the amount of compensation to offer the potential employee. However, beginning January 1, 2020, employers in New Jersey will no longer be permitted to request this information.
The new law prohibits New Jersey employers from inquiring into an employee’s salary history before making an offer; using salary history to “screen” an applicant; or requiring an applicant’s salary history to meet any minimum or maximum criteria. Employers also cannot use an applicant’s refusal to volunteer compensation information as a factor in any employment decision. There are certain exemptions, including internal applicants and disclosures required by federal law.
If a candidate volunteers his or her salary history, without prompting or coercion from the employer, then the employer can consider the information. The law also permits an employer to verify such information if voluntarily disclosed and to request a written authorization to verify prior salary history after an offer is made and compensation details are communicated.
Even if the candidate works in a job where the salary history is publicly available, the employer cannot “retain or consider” that information when determining the salary, benefits or other compensation, unless the information is voluntarily disclosed by the candidate. FULL ARTICLE