NYC Employers Can No Longer Ask This Question

NEW YORK, NY — New York City employers are now banned from asking job-hunters what they made in their past posts. A city law goes into effect Tuesday prohibiting job applications from asking applicants about their salary history.

The measure is aimed at slimming gender- and race-based pay gaps by letting women and people of color negotiate salaries based on their qualifications, not what they made before, city officials said. The City Council passed the law in April and Mayor Bill de Blasio signed it in May.

"Today, we say goodbye to the much-dreaded question that forces too many women and people of color to continue working at an unfairly low wage, job after job," First Lady Chirlane McCray said in a statement. "Beginning today, employers in New York City who ask job applicants to share their salary history are breaking the law."

Advocates argue banning questions about past pay makes it less likely that women and people of color — who are statistically paid less than their white and male counterparts — will get lowball salary offers.

Watch Now: NYC Employers Can't Ask This Question Starting Today

Women in New York earn $5.8 billion less annually than men, Public Advocate Letitia James found last year. Race widens the gap further — Black and Hispanic women earn 55 cents and 45 cents, respectively, for every dollar a white man makes, James' study found.

The city's Commission on Human Rights will enforce the new law, which also prohibits public and private employers from asking other companies or searching public records to find an applicant's prior salary. Violators could get slapped with a civil fine of up to $250,000.

The city has launched an ad campaign to educate companies and the public about the new rules and how to follow them.

Massachusetts passed a state law similar to New York City's last year. Business groups reportedly opposed it, calling it unnecessary regulation that would not increase pay equity.

A survey last year by PayScale, an online salary database, suggests the pay gap may persist even with such laws in place. Women who refused to share their salary histories when asked were paid 1.8 percent less than those who did, while men who didn't share them were paid 1.2 percent more than those who did.

(Lead image via Pixabay)