The New York office of the National Federation of Independent Business (NFIB) is concerned about the new state law that forbids employers from asking prospective employees about their salary history. The new law, which Gov. Andrew Cuomo signed July 10, expands equal-pay laws to “prohibit unequal pay on the basis of a protected class for […]
The New York office of the National Federation of Independent Business (NFIB) is concerned about the new state law that forbids employers from asking prospective employees about their salary history.
The new law, which Gov. Andrew Cuomo signed July 10, expands equal-pay laws to “prohibit unequal pay on the basis of a protected class for all substantially similar work,” Cuomo’s office said.
Supporters argue that the measure will benefit the push for pay equality, the NFIB noted. But the organization is against the new law, saying small-business owners “will likely face” the financial burden.
“It’s just another administrative mandate complete with additional frictional costs that will make it that much more difficult for small businesses to hire the talent they need,” Greg Biryla, NFIB’s New York State director, said in a July 16 statement posted on the organization’s website.
The new law takes effect in early 2020, the NFIB added.
Cuomo signed the law, “a key component of his “2019 women’s justice agenda,” at the ticker-tape parade celebrating the World Cup champion U.S. women’s soccer team.
The legislation prohibits all employers, public and private, who do business in New York state, from asking prospective employees about their salary history and compensation, and expands the definition of “equal pay for equal work.”
The state law builds on two executive orders that Cuomo signed last year to eliminate the wage gap by prohibiting state entities from evaluating candidates based on wage history and requiring state contractors to disclose data on the gender, race and ethnicity of employees, “leveraging taxpayer dollars to drive transparency and advance pay equity statewide,” Cuomo’s office said.
Cuomo in 2017 directed the New York State Department of Labor to issue a report on the gender pay gap in New York and provide recommendations to “break the cycle of unfair, unequal compensation.”
After holding pay equity hearings across the state, the state Labor Department released its report last spring, Cuomo’s office said.