It is expected that soon, New York City employers will be banned from asking about salary information during the background check process. On April 5th, 2017, the city counsel passed Bill INT-1253-2016, which would become effective 180 days after Mayor de Blasio's expected signature. Philadelphia and Massachusetts are currently following these same regulations.
Unlike other state and federal laws guiding use of professional background checks; this law would make it illegal for even the employer themselves to privately attempt to get this information.
A voluntary disclosure of previous salary information is not considered a violation, as long as it is truly volunteered and without prompting. This bill would not apply to federal, state or local positions where salary information is mandated by law.
The New York Commission on Human Rights (HYCHRL) would be the agency in charge of enforcing this law. Penalties up to $250,000 would be imposed for violations.
What Employers Should Do:
If you employ people in the City of New York and do your own employment verifications; remove all questions pertaining to salary information.
Speak to your attorney to see if you fall into an exempted category of employers.
Contact your background screening firm to ensure they are compliant and advise them that you are currently hiring in New York.
Ensure that your Disclosure Forms do not request salary information out of New York City.
Contact Employers Investigative Services, even if you're not a client, to get a second opinion on your screening needs and compliance. Toll Free (866) 350-5638 or email email@example.com
Employers Investigative Services is a nationwide pre-employment background check, drug testing and occupational screening provider. We are not attorneys. Always check with labor law professionals when implementing any new policies.