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.

Recent Posts


Paycheck Protection Program Federal Small Business Assistance Employee Manuals and Policies New Address Executive Severance entrepreneur Fair Pay and Safe Workplace Executive Order I-9 Verification Marijuana Testing Firm Announcements Fair Play to Pay Act Human Rights Law #meToo Workplace Requirements Executive Negotiation Federal Joint Employer Rule Mandatory Class Action Waivers Economic Injury Disaster Loans Emergency Economic Injury Grants Joint-Employer Relationship stocks Public-Sector Union Fees Nobel Prize Federal Overtime Law Postnup Hairstyle Discrimination EEOC Filing Requirement Fair Workweek Law Trademark Law Facebook Privacy and Litigation Interns Credit AirBnB Household Employees Nanny Audit Prenup Westchester Safe and Sick Time Laws Domain Name Trade Secrets Act Browning-Ferris Case New York Earned Sick Time Act Overtime Rules Freelance Isn't Free Pregnancy federal Department of Labor New York City Human Rights Law Minimum wage Credit History Right to Unionize Worker's Rights Selling Business NYC Sexual harrassment law employment discrimination lawsuits NYC Salary History Law Payroll Scams Trade Secrets Unions Privacy Trademark licensing Tax-Deferred Savings Womens Rights Transgender protections Sexual Harassment and Discrimination In The Workplace LinkedIn marijuana usage Fair Work Week Legislation commuter benefits Independent Contractor NYC Human Right's Law's Sexual Harassment policy Landlord-Tenant Law Apple vs. FBI Immigration Status Newsletter Fair Labor Standards Act (FLSA) NYC Sick Leave Law Intellectual Property Employment Law Non-Qualified Stock Options National Labor Relations Act Unionization $15 Minimum Wage Federal Acquisition Regulatory Council Sexual Harassment Credit Checks Affordable Care Act Glatt v. Fox Searchlight Pictures U.S. Department of Labor COVID-19 Web Domains Employment Contracts Families First Coronavirus Response Act Attracting Investment Wage and Hour Law Ban the Box Fair Chance Act Interview Series Fair Labor Standards Act Criminal Record Security Illegal rentals Employee Salary Histories Housing Law NY payroll law graduate students Alter-Ego Doctrine Out-of-State LLC Owners Overtime Exemptions Internet Law Employer Mandate Corporate Law Plastic Bag Ban Real Estate Law Federal Contractors Health Care Interns as Employees Webinar Paid Family Leave NQSO Divorce Business Salary History Inquiries drug testing NLRB Technology Arbitration Agreements ACA Westchester County implementing new leave laws Employment Offer/Agreement workplace discrimination Glatt v. Fox Searchlight Pictures, Inc. National Labor Relations Board Wage Theft Protection Act Start-up Ventures Lactation Law Business Law Negotiating sexual harassment training Department of Labor


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

EDIT - BlogTagCloud - Font style


  • 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.