Rules regarding the New York City Salary Inquiry History Ban were released last week. These rules solidify the amendment to the NYC Administrative Code, which bans employers based in NYC from inquiring about a candidate’s compensation history. The amendment, which will go into effect on October 31st, 2017, strives to close the gender wage gap.
Since the signing of the bill in May, Talener has taken strides to eliminate compensation history from our daily practices. This reflex of asking about past compensation is something that Mike Dsupin, CEO of Talener, addressed in his open letter in May. All Talener locations across the country have moved towards eliminating past compensation history from the equation in order to level the playing field.
Over the past 6 months, employers in New York City have been encouraged to change interview and hiring processes that require compensation history ahead of the law’s effective date. This includes applications, on-boarding documents, and interviews. Likewise, searching publicly available records with the intent of learning about past compensation history is also prohibited. Failure to comply with the new law can bring substantial fines or violations.
- How do staffing agencies fit into the law?
Staffing agencies located in New York are also required to comply with the new rules. Staffing agencies that act as the employer or as agents between an employer and a candidate will need to adjust their application and interviewing practices as well.
- What if I’ve worked with a staffing agency before and they already know my compensation history?
If the history is already known, agencies cannot share this information with an employer without written consent from the candidate.
- The staffing agency is located in New York City but the role and company are outside of NYC. How does this work?
Interviews conducted in New York City are pursuant to the law. However, employers and roles located outside of NYC (i.e. New Jersey) are not subject to the law. While the NYC staffing firm cannot ask about compensation history, the NJ based-employer is exempt.
The adoption of the New York City Salary History Inquiry Ban is only the tip of the iceberg. The state of California as well as the state of Massachusetts have also enacted similar bans to take effect in January of 2018 and July of 2018, respectively. These laws are part of a broader initiative to eliminate a life-long gender wage gap.
Detailed information regarding the NYC law can be found on the NYC Commission on Human Rights FAQ. If you have any questions about working with Talener or how this law will affect you, please reach out to us with any questions. Talener is excited to continue our efforts in closing the gender wage gap and promote inclusive hiring practices.