In the past year, we’ve seen a rise in businesses...
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Read MoreNew legislation has been signed by Mayor Bill de Blasio, and will take affect on October 31, 2017. This will undoubtedly affect employers that rely on prior salary history to set initial compensation.
The reasoning behind the new law is to circumvent pay disparities that exist for women and minorities. Similar laws have been passed in Massachusetts, Philadelphia and Puerto Rico and there are other cities and states considering similar legislation. There has also been legislation presented at the Federal level as well.
There are exceptions to this law.
The ban also does not apply
A common practice is to ask for salary history, so HR professionals will need to examine policies and reconsider the questions that are asked about salary history. This law will also create an atmosphere that requires a more uniform policy when it comes to setting compensation.
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