November 18, 2019
After the new year, New Jersey will be joining New York in a ban against asking for salary history during the application process.
Lt. Governor Sheila Oliver signed into law the prohibition of employers requesting or relying on a job application’s wage, salary or benefits history during the hiring and pay agreement process that will take effect on January 1, 2020.
If an applicant voluntarily provides their salary without being prompted, the potential employer may legally verify salary history and factor the information when creating an offer. The law, however, does not include; internal transition or promotions, if the candidate was a prior employee of the business, or when federal law mandates the disclosure of a candidate’s salary history.
The new legislation does not ban employers from asking for commission or incentive history but does ban employers from searching or asking for previous earnings related to those plans.
Non-salary related history from background checks is not banned either, so long as the employer states in the request to not disclose salary history. If salary history is included in the background report, employers are exempt from retaining the information and cannot consider it when deciding compensation.
Fines for the new law range from $1,000 to $10,000 depending on the number of offenses, plus additional penalties from the New Jersey Law Against Discrimination.
If an employer has a multi-state employment application that includes operations outside of New Jersey, the employer is allowed to have a salary-history question with a disclaimer that an applicant for a position located in whole or in substantial part in New Jersey is instructed not to answer the question.
If you conduct business in New Jersey, or any other region that has banned salary history, you must amend your application process and forms – which includes paper applications, web-based applications and interview templates – by the designated cut-off date. It’s also wise to confirm with any third party vendors involved in your hiring process, like recruiters and background reporters, that they are aware of the salary history law in your area.
BeyondPay clients looking for assistance on updating affected applications or documents in the system can review the article How to Remove Salary from an Application or reach out to email@example.com.
If your applicant tracking system is disparate from the rest of your workforce management tools, now is a great time to look into bundling your processes for simple, and compliant, record keeping. With BeyondPay, we don’t just hand our HCM technology over to you without guidance. We are as involved with your HR for implementation, support, and ongoing training as you would like.
Interested in becoming a part of the BeyondPay community? Request a meeting to get the conversation started.
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