It's illegal to ask salary history in New York City

For those in New York City in case you missed it, it is now illegal for a company or recruiters to ask you for your salary history. They can ask what your desired salary is, but cannot ask you how much you were making at your previous employer.

New law went into effect October 31st.

https://www.littler.com/publication-press/publication/new-york-city-set-ban-inquiries-about-salary-history

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Comments

Danielm7

I think this is a great thing. Most people switch jobs for more money. If I'm going to leave my first job because I'm 20K under market value, but the next job needs to know that and can "according to their (fake) policy" only pay me 17K under market value, well that's just silly.

TechGromit

Those are some steep fines, up to 125k if I accidentally ask you (not knowing the law) and up to 250k if I knowing violate the law, in addition you can sue me. It's not clear if these fines are against companies or individuals.

A similar law in Philadelphia, max fines are only $2,000, but if you violate it enough, they can toss your azz in jail for 90 days.

gespenstern

Won't work in a long run. 10-15 years from now there will be enough researches that will prove that it was of no help neither to businesses, nor candidates.

Danielm7

gespenstern wrote: »

Won't work in a long run. 10-15 years from now there will be enough researches that will prove that it was of no help neither to businesses, nor candidates.

While I appreciate your ability to predict the future, what makes you think this won't be helpful for candidates?

mbarrett

Are they prohibited from asking you, or from trying to find out?
https://krebsonsecurity.com/2017/11/equifax-reopens-salary-lookup-service/
As discussed, Equifax runs a service online that companies can use to view your salary history (of any previous employers who shared that info.)
What's to stop someone from using a 3rd-party service online?
A lot of this info is out there already. Even if you don't want to play ball, they can still find out.

Danielm7

For someone to use that server, The Work Number, you need to get them a code so they can look you up. It's not public information.

Phalanx

I don't get this infatuation in the USA of knowing people's salary history. Do that in the UK and you're opening all kinds of cans of worms. It's kind of amusing and scary at the same time reading this and other salary threads on TE.

NavyMooseCCNA

I think it is dirty pool to ask for a salary history. As much as I dislike big government, I do support this...

Danielm7

They want to know it so they can offer you just over whatever your last job paid, not market value or what they budgeted for. The idea of "if we know their last salary we know if they're too high for us to pay" is silly because they can simply post a salary range for the job listing and people who are above that range wouldn't bother applying. But, if they did that then they couldn't lowball others if they already knew their salary history.

dave330i

Great. A law to help those of us who don't know how to interview. More nanny state BS.

Basic85

This is a good law to have as employers have abused this system. California is in the works of implementing this law as well and I hope they do.

TheFORCE

Danielm7 wrote: »

They want to know it so they can offer you just over whatever your last job paid, not market value or what they budgeted for. The idea of "if we know their last salary we know if they're too high for us to pay" is silly because they can simply post a salary range for the job listing and people who are above that range wouldn't bother applying. But, if they did that then they couldn't lowball others if they already knew their salary history.

Exactly right.

And for those who say they can use services, that's the same as asking. The law clearly states you cannot ask for someone's salary, doesn't specify person or entity.

mbarrett

Danielm7 wrote: »

They want to know it so they can offer you just over whatever your last job paid, not market value or what they budgeted for. The idea of "if we know their last salary we know if they're too high for us to pay" is silly because they can simply post a salary range for the job listing and people who are above that range wouldn't bother applying. But, if they did that then they couldn't lowball others if they already knew their salary history.

I don't think any one company can control the market this way, unless they know they're the only ones hiring a specific skillset and they can keep the wages low. For most things, a company can try to lowball but that isn't going to retain employees for very long.

JoJoCal19

dave330i wrote: »

Great. A law to help those of us who don't know how to interview. More nanny state BS.

Your post is BS. I interview extremely well, and my hit rate on jobs that I actually interview for is ridiculously high. That still doesn't solve the fact that plenty of companies (and many big, desirable to work for and high paying ones) use the practice of not just asking for, but confirming salary via W2 or paystub. All for the purpose of lowballing candidates. Had there been a national law on this, I'd only have had to make half the job jumps I did to get into mid six figures salary.

TechGromit

Phalanx wrote: »

I don't get this infatuation in the USA of knowing people's salary history. Do that in the UK and you're opening all kinds of cans of worms. It's kind of amusing and scary at the same time reading this and other salary threads on TE.

It all has to do with low balling new potential employees. If I know you make $20 and hour at you current job, I'll offer you $21 to work for me. I want to pay you as little as possible, and knowing what you made at your last job greatly helps me make sure I don't pay you too much, but enough that you take the job. I'll take every advantage I can to minimize the costs of hiring you, such as you don't match our requirements exactly, but if you take less I'm sure we can work something out. Or your a woman, I'll offer you less cause (I'll lie) got really qualified man I'll hire instead if you don't take the job for what I'm offering. I don't care it's not fair or it's gender inequality, I'm only interested in getting workers for less. Unemployed? So much the better, I'll just deduct a few bucks from what I was thinking about offering you, cause I know you really NEED a job.

There are draw backs to this strategy, if you accept the job I'm offering at $21, there's a chance you'll leave the when someone offers you $22, but I'll pay the odds, people don't like change, so long as I'm careful to turn the heat up gradually, the frog workers will contently boil away in my workplace pot.

EANx

It used to be that credit reporting services would report salaries over 80k (this was pre-2k). If you authorize a company to pull your credit report, you might be authorizing the credit reporting service to release previously reported salary amounts.

Raisin

The easy way to combat the low ball offers is to play other offers against each other. You simply state that you came from another interview where you were verbally told your asking salary wouldn't be a problem. Sure they could always ask to see an offer letter, but that's when you say it's expected by the end of the week and if they're going to be cheap on you then perhaps this company isn't going to be the right fit.

Having skills that are in high demand and not being desperate enough to jump on the first offer above your current salary, will get you to your goal. I use the practice as a way to filter out places which I know will be terrible to work for. There's plenty of highering managers that just want to make a good offer so they don't have to constantly back fill positions created by employees jumping ship for higher pay.

dave330i

JoJoCal19 wrote: »

Your post is BS. I interview extremely well, and my hit rate on jobs that I actually interview for is ridiculously high. That still doesn't solve the fact that plenty of companies (and many big, desirable to work for and high paying ones) use the practice of not just asking for, but confirming salary via W2 or paystub. All for the purpose of lowballing candidates. Had there been a national law on this, I'd only have had to make half the job jumps I did to get into mid six figures salary.

Read up on the salary section:

http://www.techexams.net/forums/jobs-degrees/119817-career-job-advice-observations.html

MitM

mbarrett wrote: »

Are they prohibited from asking you, or from trying to find out?
https://krebsonsecurity.com/2017/11/equifax-reopens-salary-lookup-service/
As discussed, Equifax runs a service online that companies can use to view your salary history (of any previous employers who shared that info.)
What's to stop someone from using a 3rd-party service online?
A lot of this info is out there already. Even if you don't want to play ball, they can still find out.

Well I guess there needs to be a law that prevents employers from sharing this info.

TechGromit

EANx wrote: »

It used to be that credit reporting services would report salaries over 80k (this was pre-2k). If you authorize a company to pull your credit report, you might be authorizing the credit reporting service to release previously reported salary amounts.

Perhaps, but this is usually part of a background check, conducted AFTER they make you an offer.

Raisin wrote: »

The easy way to combat the low ball offers is to play other offers against each other. You simply state that you came from another interview where you were verbally told your asking salary wouldn't be a problem.

Or you tell them your number, don't want to meet it or come reasonably close, you'll look elsewhere.

ITSec14

My problem isn't so much companies asking me my current salary (I know how to maneuver around that question), it's the fact that they want my salary history beyond that AND want me to submit proof via W-2's or pay stubs to 3rd party background check companies outsourced overseas.

Panther

I hope it goes nationwide.

Phalanx wrote: »

I don't get this infatuation in the USA of knowing people's salary history. Do that in the UK and you're opening all kinds of cans of worms. It's kind of amusing and scary at the same time reading this and other salary threads on TE.

What does the UK do?

aderon

I feel like this tactic of low-balling and offering just barely above what someone is already making is an almost guaranteed way of getting low quality employees. Why would a talented employee accept a low ball when they could just accept a better offer elsewhere?