California Joins Other States Banning Inquiries Into Salary History

2017 brought a flurry of new laws limiting employers’ ability to request or consider salary history, with California joining the fray at the new year.  Employers across the country are revisiting their interview and application practices in certain cities and states, or even nationwide given this new trend. 

Here is a sampling: California (AB 168/Lab. Code § 432.3 passed October 12, 2017, effective January 1, 2018), Massachusetts (Act to Establish Pay Equity passed August 1, 2016, effective July 1, 2018), Delaware (Delaware Code Title 19, Chapter 7 passed June 14, 2017, effective December 14, 2017), Oregon (H.B. 2005 passed June 1, 2017, effective October 6, 2017), Puerto Rico (Puerto Rico Equal Pay Act No. 16-2017, passed and effective March 8, 2017, penalties effective March 8, 2018), San Francisco (Article 33J effective July 1, 2018, penalties effective January 1, 2019), New York City (N.Y.C. Admin. Code Section 8-107, subd. 25 effective October 31, 2017), and Philadelphia (Title 9 of The Philadelphia Code passed January 23, 2017, effective date stayed pending litigation regarding businesses’ freedom of speech rights under the First Amendment). 

Though they vary in the details, the new laws generally prevent employers from requesting or relying on salary history when deciding whether to offer the applicant a job or what salary to offer.  Some laws even prevent prospective employers from searching public records or contacting past employers about salaries.  The penalties imposed range dramatically as well, from $100 per violation (San Francisco) to $250,000 (New York City).  It is imperative that employers revisit their hiring processes to take these new laws into account. 

Riley Safer Holmes & Cancila’s employment team has extensive experience reviewing, analyzing, drafting, and updating employment-related policies for compliance with applicable law.