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A new law taking effect this year makes it illegal for employers to screen job applicants based on salary history.

The law is seen as a way of promoting gender and racial equity, since basing future compensation on what employees have been paid in the past can wind up perpetuating past biases in pay.

Shortly after the law was signed, Connell Foley attorneys Marianne C. Tolomeo and Michael A. Shadiack shared tips on what employers should do to make sure they’re in compliance with the new law. Connell Foley is NJBIA’s Legal Resource program provider for member companies.

“An employer may, however, verify salary history and consider it in determining compensation if an applicant discloses that history voluntarily (i.e., without prompting or coercion),” Tolomeo and Shadiack write. “Employers may also request written authorization from any applicant to confirm compensation history after making an offer of employment and providing an explanation of the compensation package.”

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