Salary History Question Prohibition Act
The Salary History Question Prohibition Act would amend the Fair Labor Standards Act of 1938 to prohibit employers from using a prospective employee’s prior wages to influence whether they are considered for a job or what they will be paid. Specifically, it bans relying on wage history to screen candidates, to set wages, or to require prior wages as a condition of consideration. Exceptions exist if the candidate voluntarily provides wage history after an offer has been made and to support a higher wage than offered. Employers may only seek wage history after an offer is extended and if the prospective employee voluntarily provides it to justify a higher wage. The bill also prohibits retaliation against employees or prospective employees who oppose unlawful practices or discrimination. Violations carry civil penalties and potential damages, with a private right of action in federal or state courts.
Key Points
- 1It is unlawful for an employer to rely on a prospective employee’s wage history when considering them for employment or to determine compensation, with a narrow exception for voluntary disclosure after an offer.
- 2Employers may rely on wage history only if voluntarily provided after an offer has been made and to support a higher wage than the offer.
- 3Employers may seek wage history only after an offer of employment has been made and the candidate voluntarily provides prior wage information to support a higher wage.
- 4Prohibits retaliation against employees or prospective employees who oppose unlawful acts or participate in discrimination processes.
- 5Defines wage history as wages paid by the prospective employee’s current or previous employer; adds new penalties and private enforcement mechanisms.