Pub. 18 2019-2020 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 1 , 2 0 2 0 12 new jersey auto retailer As Dealers are no doubt aware, 2019 was a busy year in New Jersey for enacting far-reaching employee-friendly employment and labor laws. The outlook for 2020 appears to continue that trend. Now, more than ever, employees have an increased and acute awareness of their rights in the workplace, and dealers must ensure compliance and be armed with the appropriate policies to defend potential claims by their employ- ees. Below is an overview of two key new employment laws affecting dealers. 1. Thou Shalt Not Inquire: New Jersey Bans Inquiries into Salary History Effective January 1, 2020, employers are now barred from screening job applicants based on wage or salary history, includ- ing requiring applicants to satisfy any minimum or maximum salary criteria. Dealers will also be prohibited from considering an applicant’s refusal to volunteer salary history in any employ- ment decisions, including finalizing an employment contract. The new law, however, creates a carve-out for dealers who have employees subject to a collective bargaining agreement. Dealers are permitted to: • Consider an applicant’s salary history if voluntarily provid- ed without coercion. If voluntarily provided, employers may verify salary history information. An applicant’s failure to voluntarily reveal salary information cannot be considered by the employer in any employment decisions. • After an offer of employment has been made to an applicant that includes an explanation of the “overall compensation package,” request that the applicant provides written autho- rization to confirm salary history. • Acquire publicly available salary history information but may not retain or consider that information when determining the salary, benefits, or other compensation of the applicant unless the applicant voluntarily, without employer prompting or coercion, provides the employer with salary history. The new law also does not apply to the following: • Applications for internal transfer or promotion with the same employer; • Use of knowledge of previous salary information acquired as a result of an applicant’s prior employment with the employer; • Actions taken pursuant to a federal law or regulation that expressly requires disclosure, verification, or use of salary history for employment purposes; • Salary-related information obtained when conducting a background check so long as the employer specifies that salary history information is not to be disclosed. In that case, the employer is prohibited from retaining the information or con- sidering it when determining compensation for the applicant. • Inquiries regarding an applicant’s previous experience with incentive and commission plans, provided that the compen- sation package for the position for which the applicant is being considered includes an incentive or commission com- ponent and the employer does not seek information regarding Are You Ready for 2020? Employment and Labor Law Compliance for NJ Dealerships BY DINA M. MASTELLONE, ESQ. AND BRIAN M. MCKEEGAN, ESQ.