NJ's Ban on Salary History Questions: Your Former Pay Can't Set Your New Salary

Salary negotiations often involve questions about an applicant’s previous pay, but New Jersey law limits how employers can use this information. 

Over more than ten years of experience at Brandon J. Broderick, our team has seen applicants asked about prior pay early in the hiring process. Employers sometimes treat those questions as routine. But hiring practices that seem routine can create compliance issues in the Garden State. The salary history ban restricts when and how that information is requested or considered. 

When employers rely on a job applicant’s history to set compensation, it can perpetuate wage gaps that New Jersey law is designed to prevent.

This article explains how the ban works, when employers are prohibited from asking about prior pay, what job applicants should know about compensation discussions, and when it’s time to consult an equal pay lawyer in New Jersey. 

What New Jersey’s Salary History Ban Actually Prohibits

New Jersey adopted a statewide salary history ban to change how employers set wages for new hires. Before, employers used that information to shape compensation offers. If someone had been underpaid in a previous role, the gap often followed them into the next one. 

A Pew Research Center analysis found that in 2024, women earned about 85% of what men earned, compared with about 81% in 2003. Under current law, historically biased market rates and prior compensation cannot be used to justify a wage gap.

The rule appears in N.J.S.A. 34:6B-20 and applies to employers, staffing agencies, and recruiters. It governs how pay discussions happen before a job offer. 

Employers can’t ask applicants about previous wages, salaries, commissions, bonuses, or benefits. A company also can’t search public records or third-party vendors for this information when evaluating candidates.

A hiring manager cannot cancel an interview or reduce compensation because someone declines to disclose previous pay. Job seekers have the right to keep that information private.

Removing the wage history from the process doesn’t prevent employers from negotiating compensation. Businesses still evaluate experience and skills when setting salaries. 

Applicants who previously held the same or similar job titles may still have been paid very differently. Workers performing comparable roles have historically been paid unequally due to bias or other workplace practices. The decisions should rely on qualifications and responsibilities, not earlier earnings that reflect discrimination or outdated practices.

Pay discussions remain lawful. Employers often ask what compensation range a candidate expects in a new role. With additional transparency laws in place, applicants can also ask clearer questions about salary ranges rather than relying on past earnings. 

Some companies continue to use national application systems designed for states where the question remains legal. Our team at Brandon J. Broderick has encountered hiring disputes tied to recruiters unfamiliar with state law.

Applicants often encounter questions that shouldn’t appear in interviews. An equal pay attorney in New Jersey can assess whether those questions violate state law.

Situations Where Salary History Still Appears Under NJ Pay Equity Hiring Laws

A few narrow situations still allow past compensation to enter the conversation. 

Voluntary disclosure is a common example. Some candidates mention prior pay during negotiations because they believe it strengthens their position. Employers may consider the information only if the applicant brings it up without prompting.

• Verification after a job offer is also allowed. Once a company makes an offer with compensation terms, it can confirm prior earnings if the applicant agrees. At that point, the hiring decision has already been made.

• Internal employment is different. When an employee seeks a promotion or transfer within the same organization, the company already possesses payroll records. Reviewing that information doesn’t violate the law.

• Multi-state hiring creates additional complexity. National companies use the same job application platform across the country. A form designed for several states often contains questions about previous wages. 

Remote work can blur the lines even further, allowing bias and assumptions to persist. When a position involves work in New Jersey, employers must allow applicants to skip the question or explain their rights under state law.

Sometimes, conversations about bonuses or commissions drift toward previous earnings without anyone intending to break the rule. Common situations include:

• Recruiters ask what compensation range a candidate previously earned
• Interviewers asking how bonuses worked at a former employer
• Background check reports containing data from prior jobs

A question framed casually still counts as an inquiry if it seeks information about prior earnings. Friendly negotiation tactics sometimes include comments like “What were you making before?” or “What range did your last employer pay?”  Those questions fall within the ban. Conversations should focus on the job being offered and what the applicant expects to earn moving forward.

Some screening companies compile employment data. Using those reports before making an offer can violate the law if an employer relies on them to set compensation.

From our experience working with employers, updating hiring forms and interview practices helps avoid problems. Outdated procedures can expose companies to complaints and civil penalties.

How New Jersey’s Salary History Ban Advances Pay Equity In Hiring

The salary history ban works alongside the New Jersey Law Against Discrimination (NJLAD) and other pay equity protections.

New Jersey strengthened those protections with the Diane B. Allen Equal Pay Act, adopted in 2018. That law requires equal compensation for employees performing similar work, regardless of gender, race, or other protected characteristics. Employers must justify any differences with legitimate factors. These may include experience or training.

If a worker entered a new job earning less because of discrimination at a previous employer, the lower wage often followed them. Even subtle factors, like accent bias, can affect how employers perceive candidates. This pattern of discrimination remains widespread nationwide. In just 2024, the U.S. Equal Employment Opportunity Commission reported securing nearly $700 million for workers subjected to workplace discrimination.

A 2025 state law also requires many employers to disclose wage ranges upfront. 

These policies reshape hiring practices. Employers must evaluate compensation decisions using objective factors tied to the job itself. Important considerations now include:

• Education, certifications, and specialized training
• Experience performing similar work
• Seniority within an organization
• Measurable productivity or performance metrics
• Geographic market rates for the position

Those factors help explain legitimate differences between employees performing comparable work. Standard ranges and internal policies reduce the risk of inconsistent decisions.

Removing compensation history from hiring discussions gives applicants a chance to negotiate based on their qualifications rather than past earnings.

Job seekers entering the hiring process gain clearer expectations. Employers must think more carefully about how they determine pay.

New Jersey’s approach reflects a broader trend across the United States. Several states and cities adopted similar policies after research showed salary history questions helped sustain wage gaps.

What To Do If A New Jersey Employer Asks About Your Previous Salary

Despite clear rules, salary history questions still appear during hiring. Applicants encounter them during interviews or on online job applications. Understanding how to respond helps job seekers protect their rights.

A direct interview question about past earnings violates New Jersey law. Online application systems still include mandatory salary history fields. If the form refuses to proceed without entering a number, the employer’s application process conflicts with state law.

Staffing agencies sometimes collect compensation information before presenting candidates to employers. Those requests fall under the same restrictions as employer interviews.

Our specialists often recommend a few practical steps when encountering unlawful questions:

• Politely decline to share past earnings and focus on the expected salary for the new role
• Keep records of interview questions, emails, or recruiter messages discussing previous pay
• Take screenshots of online application fields requesting compensation history
• Save job postings or offer letters connected to the process

Written records can become important evidence if the hiring process is later disputed.

New Jersey enforces the ban through civil penalties. Employers that violate the rule face escalating fines:

• Up to $1,000 for a first violation
• Up to $5,000 for a second violation
• Up to $10,000 for each later violation

Some applicants only discover the issue after receiving a job offer with lower pay than expected. Others encounter the question repeatedly with different employers. This signals broader compliance problems within a company’s hiring process.

Past Pay Should Not Decide Future Wages

Salary history questions once shaped negotiations across many industries. A worker who started underpaid often carried that gap into the next job, and then the next one after that.

New Jersey removed past compensation from early hiring discussions. 

Past pay reflects a different employer and a different market. It doesn’t define a person’s value in a new position. Employers must focus on the position itself and what a candidate brings to the role. 

If an employer asks about your previous salary during hiring, your rights under New Jersey law deserve attention. 

Contact us today for a free consultation.