As the October 31, 2017 effective date for the New York City salary history inquiry law fast approaches, the NYC Commission on Human Rights (the “Commission”) has issued two new fact sheets addressing applicants’ rights, and employer responsibilities, under the new law. The first fact sheet is addressed to job applicants, while the second fact sheet is directed toward employers, recruiters and employment agencies.
As we previously reported, the new law will prohibit employers and their agents from inquiring about an applicant’s salary history, and/or relying on an applicant’s salary history in determining the compensation for that applicant during the hiring process, including as part of the negotiation of a contract. Employers may, however, engage in discussion with applicants about their expectations with regard to compensation, including unvested equity or deferred compensation that would be forfeited should the applicant leave a current position. Employers may also consider prior salary information that is disclosed by an applicant voluntarily and without prompting.
The fact sheets largely reiterate the key requirements of the law. However, they do provide some further guidance on issues relating to who is covered under the law, namely:
- The law applies to all employers in New York City, regardless of size. Thus, employers with at least one employee in New York City are required to abide by the restrictions of the law.
- The law protects most applicants for new employment in New York City, including for full-time and part-time positions, as well as for internships. The law also protects independent contractors who do not have their own employees.
We will continue to watch for further guidance from the Commission as the October 31 effective date of the law approaches. In the meantime, employers should take steps to inform their recruiters, hiring managers, human resources personnel, and others involved in the interview and hiring process of the new requirements under the law.