Governor Jerry Brown recently signed into law a new provision of the California Labor Code that will restrict employers from asking about and relying upon salary history information from job applicants.
The new law will go into effect on January 1, 2018.
The law will prohibit employers from relying on salary history information of a job applicant as a factor in determining whether to offer employment to the applicant or what salary to offer.
The law will also prohibit employers from seeking, orally or in writing, personally or through an agent, salary history information about an applicant (including compensation and benefits).
Upon request, employers will also have to provide the pay scale for a position to an applicant.
The new law includes an important exception. If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, the employer may consider or rely on that information in determining the salary for that applicant. However, even when information is voluntarily disclosed, employers may not use prior salary information, by itself, to justify any disparity in compensation, consistent with California’s Fair Pay Act.
California employers should ensure that their recruiting staff, both internal and external, is educated on these new restrictions.
EDGAR LEGAL GROUP 