Legal Alert

Zip Your Lips: New Jersey Employers Banned From Asking Salary History

July 30, 2019

On July 25, 2019, New Jersey passed a salary history ban, following in the footsteps of more than a dozen other states and cities that have already passed legislation intended to combat gender-based pay inequity. This law, signed by Acting Governor Sheila Oliver and effective January 1, 2020, will make it unlawful for private employers to ask job applicants about their salary history (prior wages and commissions), benefits, and other compensation. Employers will also be prohibited from requiring that an applicant's salary history satisfy certain minimum or maximum requirements.

Employers will only be allowed to consider salary history in a few, limited instances, including if an applicant voluntarily discloses salary history. Another key detail: After–and only after–an employer has made an offer of employment that includes the compensation terms, an employer may request written authorization from the applicant to confirm salary history.

Employers who violate the law can be fined up to $1,000 for a first offense, $5,000 for a second offense, and $10,000 for violations thereafter.

Ballard Spahr's Labor and Employment Group has experience working with human resources and recruitment personnel on modifying existing practices and forms, as well as providing cost-effective, short trainings on hiring dos and don'ts to ensure that employers do not inadvertently run afoul of the salary ban laws.

Copyright © 2019 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.

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