September 18, 2019
New Jersey recently enacted a new law prohibiting employers from seeking or relying on a job applicant’s salary history. The law, which will take effect on January 1, 2020, prohibits employers from: (1) screening job applicants based on the applicant’s prior salary history, which includes prior wages, salary and benefits; and (2) requiring that a job applicant’s salary history satisfy any minimum or maximum threshold. New Jersey follows New York City in its salary ban law enacted in 2017.
Certain exceptions to the NJ salary law exist:
Employment agencies are partially insulated under the law. Applicants may disclose salary history data and information regarding the applicant's experience with incentive and commission plans to an employment agencies used by an applicant for job placement, and the prospective employer may use such information provided that the applicant provides express written consent to use the data.
An employer that violates the law will be liable for a civil penalties of up to $1,000 for the first violation, $5,000 for the second violation, and $10,000 for each subsequent violation.
Prior to January 1, New Jersey employers should review and make necessary modifications to their application process regarding salary history. Nelson Mullins attorneys in the Labor and Employment Group are available to assist employers with related matters.
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