The State of New York continues to make progress in its efforts to close the gender wage gap. NY DOL issued a report in April 2018 that examined the challenges of pay gap and gender equality and made specific recommendations about how to address the issues including creating public education campaigns, expanding access to child care, and job-related data transparency. The report also made the following compensation history ban recommendation:
“Institute a salary history ban that prohibits all employers, public and private, who do business in New York State from asking prospective employees about their salary history and compensation. In addition, bar employers from searching public records to discover this information.”
Subsequently, new legislation (New York Assembly Bill 02040) designed to enforce a salary history ban in both private and public sectors passed the New York State Assembly and was delivered to the NY Senate on April 16, 2018. Heavily promoted by Governor Andrew Cuomo, a staunch supporter of salary ban, New York Assembly Bill 02040 builds upon an executive order signed by Governor Cuomo in January 2017. Executive Order #161 prohibits NY state entities from asking for current or prior salary, wages, benefits or any other form of payment prior to providing the candidate with a “conditional offer of employment with compensation.”
The new legislation will amend the NY labor law to prohibit all employers who do business in the state of New York from requesting compensation information; basing compensation offered upon salary history; discriminating against a candidate based on compensation history or the refusal to provide a salary history; or retaliating against an employee or candidate who files a complaint alleging violation of the law.
If passed by the NY Senate, the amended labor law will take effect 180 days after it is signed by the governor.