e-Alert – New Jersey Enacts Salary History Ban

Background

As of January 1, 2020, New Jersey has passed a law restricting employers from requesting an applicant’s salary history including prior wages, salary, or benefits. With the new law, employers cannot require that an applicant’s salary history should satisfy any minimum or maximum criteria to be considered for a job.

Summary

Below is a list of the several circumstances in which the general ban does not apply:

• If the applicant voluntarily discloses any salary information, the employer may verify the information.
• After the employer has extended an offer of the total compensation package and has received the applicant’s written authorization, verifying the applicant’s current salary is permitted.
• If the applicant is applying for an internal transfer or promotion.
• If, under federal law, the position requires the disclosure or verification of salary history for employment purposes or requires knowledge of salary history to determine an employee’s total package.
• If an employer attempts to obtain or validate an applicant’s disclosure of non-salary-related information in the background check process and has specified that salary history information is not to be disclosed. If, in spite of that stipulation, salary history information is disclosed, the employer cannot “retain or consider” that information when determining the salary, benefits, or other compensation for the applicant.

Employers Next Steps

• Make sure that anyone involved in your hiring process is trained accordingly.
• If you are a Full-Service or Virtual HR client and would like our assistance with updating your policy, please email us.

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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.