|SAME AS||SAME AS UNI. S05233|
|COSPNSR||Ortiz, Glick, Barrett, Hunter, Simon, Jean-Pierre, Dinowitz, Titone, D'Urso, Skoufis, Blake, Davila, De La Rosa, Williams, Steck, Simotas, Paulin, Jenne, Seawright, Zebrowski, Lupardo, Gottfried, Mosley, Mayer, Peoples-Stokes, Bichotte, Rosenthal L, Wright, Walker, Colton, Jaffee, Vanel, Raia, Wallace, Fahy, Hooper, Arroyo, Weprin, Sepulveda, Morelle, Lifton, Barron, Richardson, Quart, Cook, Bronson, Carroll, Kolb|
|MLTSPNSR||Buchwald, Crouch, Dickens, Englebright, Epstein, Hevesi, Hyndman, Lentol, McDonough, Montesano, Thiele|
|Amd §296, Exec L|
|Prohibits employers from seeking salary history from prospective employees.|
|03/16/2017||referred to governmental operations|
|01/03/2018||referred to governmental operations|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6707 SPONSOR: Galef
TITLE OF BILL: An act to amend the executive law, in relation to prohibiting employers from seeking salary history from prospective employees   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to prohibit employers from seeking salary history from prospective employees.   SUMMARY OF PROVISIONS: Section 1. Adds a new subdivision 20 to Section 296 of the Executive Law. 20. (a) No employer, labor organization, employment agency or licensing agency, or employees or agent shall: (i) rely on wage history in determining wages unless voluntarily provided by the prospective employee for their benefit; (ii) request or require a prospective employee to disclose information about their wage history as a condition of being interviewed; (iii) seek from any current or former employer the previous wages of any prospective employee unless a compensation offer has been made, and the prospective employee provides wage information to support a wage higher than offered. The employer shall not refuse to hire or retaliate against a prospective employee based on their wage history or because they opposed any act or practice made unlawful by this subdivision. (b) Violation of this section is subject to a civil penalty of $5,000 for a first offense, increased by an additional $1,000 for each subsequent offense, not to exceed $10,000; and liable to each violated prospective employee their attorneys' fees and special damages not to exceed $10,000, with an action to recover the liability against any employer in any court of competent jurisdiction. (c) The Department of Labor shall establish a public awareness campaign informing employers in the state that is is illegal to seek salary information from prospec- tive employees. Section 2. This act shall take effect on the 180 day after it shall have become a law.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): This is not applicable at this time.   JUSTIFICATION: Despite numerous New York State legislative and executive protections, the federal Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, and Title I of the Americans with Disabilities Act of 1990 that prohibit discrimination in the payment of wages, there remains a very real and pervasive pay gap that affects all women, and many minority and disabled groups. The sala- ry history inquiry, a longstanding bulwark of employers and hiring managers during the job hiring process, is a pervasive form of discrimi- nation that is thought to be reasonable without its initiators fully realizing its negative and biased effect. A worker's salary history follows them throughout the course of their career. Low pay at an earlier job can affect salary at a later one as hiring managers often base their offers on previous wage compensation. Even seasoned or strong negotiators will find themselves with lower offers than individuals who earned more at an earlier position. Histor- ically, workers who receive lower offers are women and minorities. While many factors contribute to the gender pay gap, including occupa- tional segregation, patterns of work or even direct or indirect discrim- ination, the disparity in earnings between women and men from the 2015 U.S. Census Bureau is hard to ignore. U.S. women working full time, year-round were paid just 80 percent of U.S. men's median earnings - a gap of 20 percent. In New York, that number was slightly better with an 89 percent median earnings ratio between genders - yet a gap still remains and can hardly be considered equal pay for equal work. Although the gender pay gap has narrowed over time, according the Ameri- can Association of University Women (AAUW), women are not expected to reach pay equity until 2059. If change continues at a slower growth rate seen since 2001, the pay gap is not expected to close until 2152. Minority groups and people with disabilities face even larger pay gaps. For women of color, African American women in New York earn on average 66 cents on the dollar to non-Hispanic white men, while Hispanic women earn just 56 cents comparably. Asian American women fare better at 80 cents to that same dollar. However, the 2015 American Community Survey (ACS) by the U.S. Census Bureau found that both women and men of most racial minority groups were paid substantially less than non-Hispanic white workers. The ACS also shed light on earnings of people with disa- bilities. Those with disabilities made just 68 percent of what those without earned while within this population subset, there exists a large gender pay gap - median pay for women is 69 percent of that for men. In the long-term, lower career wages result in an even greater disparity in retirement income, namely through smaller Social Security benefits which are calculated based on an individual's earning history. Median income for women 65 years or older is 44 percent less than the median income for men in the same age group. Women who are 75 years or older are almost twice as likely as men to live in poverty. If this disparity begins at the onset of a career and is allowed to perpetuate, then the pay gap itself will never be rectified. This legis- lation would further protect prospective and current employees through- out New York from intentional and unintentional discrimination and would be a monumental move in the direction of pay equity for all.   PRIOR LEGISLATIVE HISTORY: This is new legislation.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: There are no fiscal implications associated with the passage of this legislation.   EFFECTIVE DATE: This act shall take effect on the 180 day after it shall have become a law.
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STATE OF NEW YORK ________________________________________________________________________ S. 5233 A. 6707 2017-2018 Regular Sessions SENATE - ASSEMBLY March 16, 2017 ___________ IN SENATE -- Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Investi- gations and Government Operations IN ASSEMBLY -- Introduced by M. of A. GALEF -- read once and referred to the Committee on Governmental Operations AN ACT to amend the executive law, in relation to prohibiting employers from seeking salary history from prospective employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 296 of the executive law is amended by adding a new 2 subdivision 20 to read as follows: 3 20. (a) No employer, labor organization, employment agency or licens- 4 ing agency, or employees or agent shall: 5 (i) rely on the wage history of a prospective employee from any 6 current or former employer of the individual in determining the wages 7 for such individual; provided that an employer may rely on prior wage 8 history when it is voluntarily provided by a prospective employee to 9 support a wage higher than the wage offered by the employer; 10 (ii) orally, or in writing, request or require as a condition of being 11 interviewed, or as a condition of continuing to be considered for an 12 offer of employment, or as a condition of employment, that a prospective 13 employee disclose information about the employee's own wages from any 14 current or former employer; and 15 (iii) orally, or in writing, seek from any current or former employer 16 the previous wages of any prospective employee; provided, however, that 17 an employer may seek to confirm prior wage information only after an 18 offer of employment with compensation has been made to the prospective 19 employee and the prospective employee responds to the offer by providing 20 prior wage information to support a wage higher than offered by the 21 employer. Under these circumstances, the employer may only seek to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10209-02-7S. 5233 2 A. 6707 1 confirm prior wages after obtaining written authorization by the 2 prospective employee to do so. 3 The employer shall not refuse to hire or otherwise retaliate against 4 an employee or prospective employee based upon prior wage or salary 5 history or because the employee or prospective employee has opposed any 6 act or practice made unlawful by this subdivision. 7 (b) (i) Any person who violates the provisions of this section shall: 8 (A) be subject to a civil penalty of five thousand dollars for a first 9 offense, increased by an additional one thousand dollars for each subse- 10 quent offense, not to exceed ten thousand dollars; and 11 (B) be liable to each employee or prospective employee who was the 12 subject of the violation for special damages not to exceed ten thousand 13 dollars plus attorneys' fees, and shall be subject to such injunctive 14 relief, or lost wages, as may be appropriate. 15 (ii) An action to recover the liability described in clause (B) of 16 subparagraph (i) of this paragraph may be maintained against any employ- 17 er in any court of competent jurisdiction by any one or more employees 18 or prospective employees for and in behalf of himself, herself or them- 19 selves and other employees similarly situated. 20 (c) The department of labor, in conjunction with the New York state 21 division of human rights, shall establish a public awareness campaign, 22 to be publicly posted on their respective websites, informing employers 23 in the state that it is illegal to seek salary information from prospec- 24 tive employees. Every employer shall notify prospective employees, in 25 writing, of their rights provided under this section. 26 § 2. This act shall take effect on the one hundred eightieth day after 27 it shall have become a law.