New Jersey has adopted a new law that prohibits all employers in the state from asking job applicants about their past salaries or using past pay information to screen applicants for employment consideration.
The new law, which goes into effect on Jan. 1, 2020, also prohibits employers from using an applicant’s past pay information to determine his or her compensation for a position, unless the applicant voluntarily, and without prompting or coercion, discloses his or her pay history.
These prohibitions do not apply when an applicant is a current employee seeking a promotion or other internal transfer. In addition, employers may use any pay history knowledge they have already obtained through their previous employment of an applicant. The law also includes other limited exceptions.
Employers should become familiar with the new law and ensure that any job applications they use in New Jersey either exclude questions about salary history or instruct applicants not to answer any such questions.