New labor law may have an impact on broker poaching

Good luck trying to poach a top real estate broker after Oct. 31. Employers in New York and a handful of other states will soon be prohibited from asking about a job candidate’s current pay.

The idea behind the New York law is to help prevent wage discrimination against women and minorities by forcing companies to pick salaries based on what they think a candidate is worth, rather than what they earned in the past. But it could make life harder for commercial real estate firms.

These companies often approach job candidates unsolicited and offer to raise their pay, Real Estate Alert reported. “It is going to change the dynamics considerably,” Anthony LoPinto of Korn Ferry told the publication.

Candidates can still volunteer how much money they make, but employers can’t ask them.

“They may have to speak first in negotiations,” said Jennifer Novack of the headhunting firm Sheffield Haworth. “As a result, employers will be best positioned if they are educated on where the market is broadly before heading into these conversations.” [REA] — Konrad Putzier