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Governor Cuomo is expected to sign a bill that would disallow employers from inquiring about an applicant’s salary history.

About The Bill

New York lawmakers introduced Assembly Bill 5308 (AB5308) to help end wage discrimination based on gender and other factors. This bill has been passed on to the Governor and awaits his signature. It stipulates that employers may not:
· Rely on an applicant’s wage or salary history when determining what level of compensation to offer.
· Request or require a candidate to provide their salary history.
· Inquire about a candidate’s salary history from other sources, such as an individual’s previous employer.
· Refuse to interview, hire, promote or otherwise employ a person because of their salary history.
· Refuse to interview, hire or otherwise retaliate against a candidate or former employee who filed a complaint regarding a violation of AB5308.

Job seekers may voluntarily provide their wage history to employers. This can be done for the purpose of negotiating a potential salary. When an employer makes an offer that includes the proposed compensation, the candidate may counter by saying they currently earn more. If this occurs, then the candidate may authorize the employer to verify their current salary.

Read the bill.

If The Bill Is Signed

AB5308 was introduced on February 8, 2019. It received strong support from assembly members. The bill was approved and submitted to Governor Cuomo, who is expected to sign it into law. If he does, it will go into effect 180 days later. New York employers should be aware of AB5308 and prepared to comply if it is signed.

The bill establishes remedies for individuals who can show a potential employer violated AB5308. If this happens, a civil action can be brought against the employer for: “…compensation for any damages sustained as a result of such violation on behalf of such applicant, employee, or other persons similarly situated in any court of competent jurisdiction. The court may award injunctive relief as well as reasonable attorneys' fees to a plaintiff who prevails in a civil action…”

AB5308 would not supersede any existing federal or state laws that require an applicant to disclose their salary history.

Wage Discrimination Laws In The U.S.

Bills like AB5308 are becoming more common in the United States. We’ve seen various laws enacted to help prevent wage discrimination based on gender and other factors. More are expected to be passed in the coming years. A best practice is to not ask candidates about their salary history or to base an offer of compensation on how much a person previously earned.

Every employer is responsible for complying with laws that cover the hiring and background screening process. We recommend maintaining written policies that are reviewed and approved by legal counsel. When you are ready to make a final hiring determination, the next step is to run a comprehensive background check. This demonstrates you are performing due diligence to create a safe work environment and helps you determine if a candidate has the required skills, education and employment history.

The experienced team at Backgrounds Online excels at creating custom background screening packages for any position. Contact us to request background checks on candidates, employees, volunteers or contractors. We are available to assist you Monday through Friday from 5am to 6pm PT.