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New Jersey Joins 17 Other States In State-Wide Salary History Ban

Attention all New Jersey employers – New Jersey recently signed into law Assembly Bill 1094; a bill which will prevent employers from screening job applicants based on their salary. This state-wide salary history ban law will go into effect on January 1, 2020.

How does this law effect New Jersey employers?

As a New Jersey employer, you will no longer be able to ask potential employees or applicants about past salary, including commissions, either in person or on applications. Applicants may voluntarily disclose the information about their prior pay but not at the request of the employer. You will also be prohibited from requiring that an applicant’s salary history satisfy certain minimum or maximum requirements. Only after the employer has made an offer of employment that includes the compensation terms may the employer may inquire about salary history. In order to do so, the employer must obtain a written authorization from the applicant to confirm salary history.

What are the penalties for violating this rule?

New Jersey employers that violate the new rules could be fined up to $1,000 for a first offense, $5,000 for a second offense and $10,000 thereafter.

What should you do to get ready for this law?

Remove questions on paper and online applications about salary histories. More importantly, however, HR teams need to train managers about asking about previous pay in interviews. Focus on questions about a potential employee’s earning expectations and emphasize that salary is commensurate with experience. Don’t forget to talk to your recruiters as well who will need to refrain from asking about salary histories in recruitment processes.

We are here to help you understand this new law, how to respond to its requirements, and to answer any questions you may have.

Understanding how this affects the small business economy is part of our job here at Santomassimo Davis LLP, as we primarily focus in providing expert Outside General Counsel for a variety of law firms and legal issues related to Corporate and Business Law  in New Jersey, New York and Pennsylvania.

Thanks for reading our latest blog talking about topical legal issues facing small businesses. Learn more from our Outside General Counsel Blogs.

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