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About The Bill

New Jersey Assembly Bill 1094 (AB1094) was signed into law by acting Governor Sheila Oliver. It is intended to help prevent wage discrimination by prohibiting employers from asking job seekers how much they earn. Employers commonly use this information to determine what level of compensation to offer new hires. However, since many people are currently paid less than their colleagues based on gender or ethnicity, this practice allows a level of wage discrimination to continue.

Governor Oliver spoke in favor of AB1094, saying: “I am proud to sign this bill today for our women, children and families, which will institute this policy as state law, and put an end to this discriminatory workplace practice once and for all.”

Details

AB1094 specifies that employers in New Jersey may not:

• Refuse to hire a person due to their gender, race, identity expression or other protected factors.
• Screen potential employees based on the person’s wage or salary history.
• Ask a job seeker about their current or previous level of compensation in person, in writing or otherwise.
• Take reprisal against an employee who shares their salary information with a colleague.

The bill creates numerous other protections for New Jersey residents. Read the full text.

Support For AB1094

In addition to the Governor, several New Jersey lawmakers have shown support for AB1094. Assemblywoman Joann Downey commented: “In an ideal world, your gender would not influence how much you earn at work. But that’s not the world we live in. This bill provides a means of narrowing the wage gap by making it less likely for employers to unintentionally perpetuate the gap by basing salary offers for new hires on their previous salary, which has a disproportionate impact on female hires.”

Senator Loretta Weinberg declared that previous compensation levels should not have any impact on how much a new employee earns today. She said: “Knowing how much they were paid in the past is irrelevant and often times leads to a cycle of pay inequity. By eliminating inquiries of salary history, we can help curb wage discrimination based not only on gender, but also race, age, and other characteristics.”

What Employers Should Know

New Jersey is one of several states to pass bills that prohibit employers from asking about salary history. There is a growing movement in the U.S. to help reduce wage gaps. Similar bills are expected to be introduced throughout the country.

Regardless of where you operate, best practice is to not ask applicants how much they earn and to offer similar compensation for similar levels of work. Adjustments can typically be made for bona fide business factors such as seniority, a merit system and to accommodate for the cost of living in different locations.

When hiring, it is important to be fair, transparent and compliant. Backgrounds Online can assist you throughout this process. We act as your partner by helping you create customizable background check packages for any position, providing educational resources about federal, state and local laws and offering sample compliance forms.

To start background screening today, please contact us. Our experienced team is here to assist you Monday through Friday from 5am to 6pm PT.