Wiggin and Dana Partner Quoted in Bloomberg Law Daily Labor Report

July 21, 2017

Wiggin and Dana Labor and Employment partner, Lawrence Peikes, was quoted in the article, "Big Apple Salary Inquiry Ban a New Obstacle for Employers."

The article discusses the consequences of state and local bans in New York that prohibit employers from asking about job applicants' salary history. The intent of the law is to "help address gender- and race-based pay inequity," but some are skeptical of the law's effects.

This new law does have a loophole that allows applicants to voluntarily disclose their salary history to potential employers.

Mr. Peikes is quoted in the article saying, "While this carve-out makes sense, it does lay the groundwork for litigation over what is or is not voluntary. So in that sense the law has the potential to generate even more employment-related lawsuits. This illustrates the problem with this sort of granular legislation."

He continued by saying, "It's not a practical solution. Salary history can be helpful in determining whether an applicant is appropriate for a particular role. For example, if a candidate's current salary is well above the amount the employer is prepared to pay, this is a good indicator that the position is ill-fitting."

He notes that employers can avoid this prohibition "by asking the applicant about his or her salary expectations or demands, which will basically get you the same information."

To read the full article, click the PDF link below.