State of New Jersey to ban Salary History use January 2020
Special Announcement to all New Jersey employers :
The State of New Jersey passed a law (A 1094 ) amending Section 11 of P.L.1945, c.169. This bill prohibits employers from inquiring into or requiring disclosure of previous salary. The Lieutenant Governor of New Jersey signed the law and it will be effective on 01/01/20
Among other things, the law makes the following an unlawful practice:
- For any employer to screen a job applicant based on the applicant’s wage or salary history, including by requiring the applicant’s prior wages, salaries or benefits satisfy any minimum or maximum criteria, or to rely on the applicant’s salary in determining a salary amount for the applicant at any stage in the hiring process, including finalizing the employment contract.
- For any employer to inquire, in writing or otherwise, about the salary history of a job applicant, including, but not limited to, the applicant’s compensation and benefits, except that the employer may seek the history if the prospective employee voluntarily, without employer coercion, provides the employer with a written authorization to do so.
This law will require a review of the hiring process in place, including any documentation or forms that all applicants must complete, and may require changes to that process.
Justifacts recommends that you consult with your legal department to determine what changes, if any, need to be made to your hiring process in order to comply with this law.
The complete text of the legislation can be found here: A 1094
It is important to note that Justifacts is providing this information as a service to our clients. None of the information contained herein should be construed as legal advice, nor is Justifacts engaged to provide legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult your attorney or legal department if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.