New Jersey Bill Seeks to Prevent Employers from Obtaining and Using Applicant Salary History

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Two New Jersey state senators have introduced a bill that would prohibit employers from asking applicants about their previous salaries and from using that information to make decisions about compensation.  See Assembly Bill 4110.  The bill is aimed at preventing wage discrimination and promoting equal pay.  The goal is that by removing an applicant’s previous wages from the mix of information that employers consider when evaluating an applicant, employers will be less likely to perpetuate an inappropriate pay disparity, and more likely to assess an applicant based on legitimate criteria such as skills and experience.  The bill’s prohibitions with regard to salary history are broad: employers may not screen applicants based on salary, inquire about an applicant’s salary history, confirm salary history until after making an offer of employment, or require employees to disclose information about another employee’s wages, among other prohibitions.  Employers who violate these rules would be subject to liability under the New Jersey Law Against Discrimination (LAD).  The bill has been referred to the New Jersey Senate Labor Committee.  If enacted, New Jersey would join at least one other state, Massachusetts, that has taken similar legislative action.

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