Over the past 6 months, Talener has taken significant steps to close the wage gap across its offices. In addition to holding itself to the standard of creating a more inclusive work environment, it also helped to prepare the Talener New York City office for the NYC Salary History Inquiry Ban. This law took effect in October 2017; prohibiting employers, staffing agencies, or anyone representing a job in NYC from asking about or requiring disclosure of compensation history. By eliminating compensation history, employers should no longer rely on previous compensation to determine future pay.
On January 1st, 2018, California will join New York City with an amendment to its Equal Pay Act; eliminating compensation / salary history as a factor for hiring. Compliance to both acts are similar, but there are a few key differences that can cause headaches for organizations with offices in California and New York City. Next year will also introduce these types of laws in Oregon, Massachusetts, San Francisco, and more.
What are the key differences between the California and NYC policies?
- The New York City Law expressly allows asking about desired or expected salary. Likewise, asking about measurements of production, including sales revenue generated, are permitted. Plus, the NYC law addresses deferred compensation and unvested equity as a subject that is OK to initiate with potential candidates. The California law does not expressly prohibit or allow these conversations.
- Candidates / applicants in California are entitled to a pay scale for a position, under reasonable request.
- California will prohibit employers from using prior compensation as the sole means to justify salary, an offer, or in the decision making process to hire someone.
What kind of steps has Talener taken to be compliant with these laws?
- Removing compensation questions from any digital and print forms or applications
- Requiring employees to agree to a policy which bars them from asking about, using, seeking out, or sharing compensation
- Educating candidates and clients about the changes
- Creating a time / date stamped feature in the applicant tracking system that documents when / if compensation has voluntarily been disclosed and how it occurred
- Committing to not using or sharing already-known compensation information with clients
- On-going staff training
To see more steps and to learn more about our compliance policy, read more here.
If you have questions about how the laws might affect you and what steps you should consider, feel free to reach out to email@example.com or pick up a brochure in one of our offices today.