Axis Insurance Services Blog

New Jersey Protects Salary Rights

Written by Drew Smith | Jan 9, 2020 2:30:00 PM

As of the New Year, New Jersey has expanded its protections for workers and the way they are hired. This time it has to do with compensation and an employer’s ability to access the information.

During a background check, typically an employer will look over various things, such as past work experience, education and life experience. They also look at past salary information which has led to many people being screened out of a job for a variety of different reasons. In many states, including New Jersey starting January 1st, this is no longer allowed, meaning employers can’t directly ask for past salary information.

There are of course exceptions to the rule. "Chief among them" is a term used when someone works in a multistate operation that includes New Jersey. When said employment is in another state but involves New Jersey, an employer may put this question on the application, with a disclaimer stating they don’t have to fill it in. In addition, they can be asked afterwards and given a written application to fill out to allow employers to ask for said information. This ban also does apply to volunteered information, i.e information willing given up by the applicant.[1]

Workers are entitled to have their information private, especially when they are looking for hiring. Companies must be wary as they do background checks in the states that allow such rights.

 

[1] https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/new-jersey-salary-history-inquiry-ban.aspx