News and Articles

Legal Update - November 2017 Newsletter

Yogi Patel - Thursday, November 02, 2017

Dear valued clients and supporters: This month's newsletter will focus on a significant law that impacts most NYC employers and employees that went into effect as of this morning (October 31, 2017).

NYC Salary History Law

Subdivision 25 to the NYC Administrative Code (Section 8-107) went into effect this morning. Under this new law, employers are prohibited from inquiring about or relying on a prospective employee's salary history prior to making an offer. As a practical matter, this new law changes how salaries are typically set and negotiated. The law is complex and broad reaching. Not only does it apply to direct employers, but agents, recruiters and headhunters. The liability flows through to all parties involved in the hiring process.

The law governs compensation broadly, meaning what type of questions an employer may ask about the prospective employees unvested equity, deferred compensation, commission, bonuses or percentage of profit - in connection with their prior employment - before making an offer of their own. The law does not place restrictions on how an employer may utilize prior salary history if it is "volunteered" by the prospective employee, however, the law prohibits the employer from "prompting".

The New York City Human Rights Commission is charged with enforcing the law and the penalties for violating the Act can include a civil penalty of $250,000.00, compensatory damages, attorney fees, hiring or reinstatement, award of back and front pay.

In order to comply with the law, employers should consider focusing questions on an applicants’ salary demands, skills, and qualifications during the hiring process instead of questions about prior compensation; Consider revising job applications and other forms to ensure that the form does not include questions about applicants' salary history (even if such questions are framed as "voluntary"); And finally appropriately train interviewers and modify written polices prohibiting inquiries about applicants' salary history.

For employers that engage headhunters, recruiters or agents - and intend on relying on representations made by headhunters, recruiters or agents that the applicant has consented to the disclosure of the applicant's salary history when engaging in negotiations on behalf of the applicant, employers should consider obtaining written authorization of release of salary history information directly from the prospective employee before relying on the representation of headhunter, recruiters or agents to mitigate their liability.

Employees should consider utilizing this law to their benefit when engaging in salary negotiations. Some employees, specifically executives whose compensation includes stock options and vesting restrictions may voluntarily discuss the impact of their prior employer's policy on their compensation pertaining to options - without "volunteering" other aspects of their compensation (base pay, commission, bonus).

Employees who are faced with impermissible questions about salary history, during the heat of the moment, might consider responding as follows (suggested by NYC Human Rights Commission):

  • In response to a question about what you currently make, you can reframe the issue in terms of your salary expectations or demands and not disclose your salary history.
  • Indicate that you’d like to discuss your compensation based on the requirements and responsibilities of the job for which you’re applying, which may differ from your prior work.
  • Reframe the question to focus on the value you can bring to the job and what you can add to the company, rather than on what you made previously.

Readers are encouraged to follow us on Twitter (@lloydpatelllp) and Facebook to receive updates on these and other issues throughout the month.

Legal Update - June 2017

Yogi Patel - Thursday, June 08, 2017

Dear valued clients and supporters: This month's newsletter will focus on three significant updates to New York City Law: (1) the Fair Work Week legislation; (2) the Freelance Isn't Free Act; and (3) the ban on asking prospective employees about their salary histories. A more in-depth article on all three of these topics will be posted on our website next month.

Fair Work Week Legislation

At the end of last month, the New York City Counsel passed the comprehensive Fair Work Week legislation into law, which provides additional protections and rights to fast food and retail industry employees. The legislative package consists of five bills that aim to give low-wage fast food and retail workers greater predictability around their schedules and their weekly pay. For example, one of the laws requires fast-food employers to provide at least 2-weeks' notice to employees of any schedule changes and to compensate workers for any last-minute alterations. Additionally, employers must also provide good faith estimates of weekly hours to new employees and offer any shifts that open up to current employees before making any hires. Overall, the new legislation is keeping pace with other major cities, like Seattle and San Francisco, aiming to protect its more vulnerable workers. Employees and employers are advised to fully understand their rights and obligations before the new law goes into effect later this year.

Freelance Isn't Free

On May 15, 2015, the Freelance Ins't Free Act, which provides enhanced protections and rights for freelance workers, went into effect. Specifically, freelancers are now entitled to insist on working pursuant to a written contract, receive additional damages from clients who do not pay, and are better protected from being retaliated against for enforcing their rights. The law allows for freelancers to file a complaint with the Office of Labor Policy Standards or to file private suit against individuals and businesses who violate their rights. Overall, particularly by allowing freelancers to recover attorney's fees if they file in court, the new law creates meaningful remedies for freelancers who might not otherwise have had the resources to pursue claims on their own. Freelancers and businesses that engage freelancers are advised to fully understand their rights and obligations under this new law.

Employee Salary Histories

On May 4, 2017, a bill that prohibits New York City employers from asking prospective employees about their salary histories was signed into law. The law now makes it an unlawful discriminatory practice for an employer to ask about an applicant's prior pay during the hiring process or to consider the prospective employee's salary history at all in determining how much to compensate the employee. The law, titled Intro. 1253, provides for penalties of up to $250,000 against employers in the most malicious instances and for compensation to aggrieved individuals. The law is set to go into effect in October of this year. Employees and employers alike are advised to fully understand the legislation's requirements and impact prior to its effective date.


Readers are encouraged to follow us on Twitter (@lloydpatelllp) and Facebook to receive updates on these and other issues throughout the month.



Recent Posts


Tags

Minimum wage Freelance Isn't Free Apple vs. FBI Credit History $15 Minimum Wage workplace discrimination graduate students Health Care NYC Salary History Law National Labor Relations Board NY payroll law NLRB Employment Offer/Agreement Criminal Record Employment Contracts Wage Theft Protection Act Affordable Care Act Privacy Housing Law Executive Severance Real Estate Law Worker's Rights Joint-Employer Relationship AirBnB Fair Pay and Safe Workplace Executive Order NYC Sexual harrassment law Firm Announcements Independent Contractor Pregnancy ACA Credit Checks #meToo Department of Labor Trademark Law Glatt v. Fox Searchlight Pictures NQSO Trademark licensing Negotiating Security Unionization Mandatory Class Action Waivers entrepreneur Internet Law Illegal rentals stocks U.S. Department of Labor Alter-Ego Doctrine Arbitration Agreements Employment Law Divorce Ban the Box Postnup Overtime Rules Newsletter Browning-Ferris Case Executive Negotiation Fair Work Week Legislation I-9 Verification Public-Sector Union Fees New York Earned Sick Time Act Federal Contractors Federal Acquisition Regulatory Council Household Employees Business Law Sexual Harassment policy Paid Family Leave Trade Secrets Act Fair Labor Standards Act Glatt v. Fox Searchlight Pictures, Inc. Corporate Law Nobel Prize Lactation Law Overtime Exemptions Business Start-up Ventures Selling Business Nanny Audit Prenup Technology Non-Qualified Stock Options Interns as Employees New Address Credit Attracting Investment Transgender protections Employee Salary Histories Human Rights Law Womens Rights Payroll Scams Intellectual Property Fair Chance Act Facebook Privacy and Litigation Web Domains Right to Unionize commuter benefits Employer Mandate National Labor Relations Act Sexual Harassment Interview Series Fair Workweek Law LinkedIn Trade Secrets Interns Unions Domain Name

Archive

EDIT - blog-container - This controls the styles for the headings

EDIT - BlogTagCloud - Font style

description

  • EDIT  - post-body - Font style

EDIT - side-panel - This is the colour of the sidebar headings

Snap | BC Module - Blog - Blog Description

Snap | BC Module - Blog - Blog Title

EDIT - Snap | BC Module - Blog - Date - This is the date box style

EDIT - Snap | BC Module - Blog - Post Content - Font style

EDIT - Snap | BC Module - Blog - Post Title - Heading style

EDIT  - Snap | BC Module - Blog - Sidebar Content - Font style

EDIT - Snap | BC Module - Blog - Sidebar Title - Heading style

latest blog title snap text

 

Disclaimer: Nothing on this website is or should be construed as legal advice.
An attorney-client relationship does not exist with our firm unless a signed
retainer agreement is executed, and we do not offer legal advice through
this site or any of the content located on it. For legal advice for your
particular circumstances, please contact us directly.