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New York City Bans Employers' Inquiries into Salary History
In an article we penned in early April, we discussed the federal circuit split over the interpretation of the Equal Pay Act (EPA) and the growing number of state and local jurisdictions enacting legislation that restricts an employer from inquiring into or using an employee's salary history. See Jeffrey S. Klein and Nicholas J. Pappas, “New Restrictions on Using Earnings History to Set Compensation,” NYLJ (April 4, 2017). Shortly thereafter, on April 5, 2017, the New York City Council passed a bill to amend the New York City Human Rights Law (NYCHRL), which will impose similar restrictions on New York City employers. (New York City Bill Int. No. 1253-A will be codified at N.Y.C. Admin. Code § 8-107(25) et seq.)
On May 4, 2017, Mayor Bill de Blasio signed the bill, which will become effective on Oct. 31, 2017. Accordingly, Halloween could become a very scary day for New York City employers. In the article herein, we review additional recent developments in the law governing employer inquiries into and reliance on the compensation history of prospective employees — and analyze the New York City ordinance within this greater context.
Background
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