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Bill > S3516


NJ S3516

NJ S3516
Prohibits employer inquiries about worker's wage and salary experience.


summary

Introduced
03/04/2019
In Committee
06/17/2019
Crossed Over
Passed
Dead
01/08/2020

Introduced Session

2018-2019 Regular Session

Bill Summary

This bill makes it an unlawful employment practice for any employer: (1) to screen a job applicant based on the applicant's salary history, including, but not limited to, the applicant's prior wages, salaries or benefits; or (2) to require that the applicant's salary history satisfy any minimum or maximum criteria. Under the bill, an employer may: (1) consider salary history in determining salary, benefits, and other compensation for the applicant, and may verify the applicant's salary history, if an applicant voluntarily, without employer prompting or coercion, provides the employer with that salary history. An applicant's refusal to volunteer compensation information will not be considered in any employment decisions; and (2) request that an applicant provide the employer with a written authorization to confirm salary history, including, but not limited to, the applicant's compensation and benefits, after an offer of employment, which offer includes an explanation of the overall compensation package, has been made to the applicant. The bill does not apply to: (1) applications for internal transfer or promotion with an employee's current employer, or use by the employer of previous knowledge obtained as a consequence of prior employment with the employer; (2) any actions taken by an employer pursuant to any federal law or regulation that expressly requires the disclosure or verification of salary history for employment purposes, or requires knowledge of salary history to determine an employee's compensation; (3) any attempt by an employer to obtain, or verify a job applicant's disclosure of, non-salary related information when conducting a background check on the job applicant, provided that, when requesting information for the background check, the employer shall specify that salary history information is not to be disclosed. If, notwithstanding that specification, salary history information is disclosed, the employer shall not retain that information or consider it when determining the salary, benefits, or other compensation of the applicant; or (4) employer inquiries regarding an applicant's previous experience with incentive and commission plans and the terms and conditions of the plans, provided that the employer shall not seek or require the applicant to report information about the amount of earnings of the applicant in connection with the plans, and that the employer shall not make any inquiry regarding the applicant's previous experience with incentive and commission plans unless the employment opening with the employer includes an incentive or commission component as part of the total compensation program. An employer who violates these provisions will be liable for a civil penalty in an amount not to exceed $1,000 for the first violation, $5,000 for the second violation, and $10,000 for each subsequent violation collectible by the Commissioner of Labor and Workforce Development in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999." If an employee is a member of a protected class, an employer who violates the provisions of the bill will be subject to certain penalties under the "Law Against Discrimination." However, the bill clarifies that certain remedies available with other claims in the "Law Against Discrimination," including punitive damages, will not be available to persons aggrieved by the provisions of the bill.

AI Summary

This bill prohibits employers from inquiring about or relying on a job applicant's salary history when making hiring and compensation decisions, with certain exceptions. Specifically, the bill makes it an unlawful employment practice for an employer to screen a job applicant based on their salary history or to require that the applicant's salary history satisfy any minimum or maximum criteria. However, the employer may consider and verify an applicant's salary history if the applicant voluntarily provides that information, and may request written authorization to confirm the applicant's salary history after making a job offer. The bill includes exemptions for internal transfers, compliance with federal laws, and inquiries about an applicant's experience with incentive or commission plans. Employers who violate the bill's provisions may face civil penalties, and if the applicant is a member of a protected class, additional penalties under the Law Against Discrimination. The bill also clarifies that certain remedies available under the Law Against Discrimination, such as punitive damages, will not be available for violations of the bill's provisions.

Committee Categories

Labor and Employment

Sponsors (3)

Last Action

Substituted by A1094 (ACS) (on 06/20/2019)

bill text


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