HF4624

Purpose

This bill changes how pay history can be used or requested in hiring. It keeps a broad rule that employers generally cannot use a job applicant’s pay history to set wages or other compensation, but it adds specific exceptions and clarifications to balance wage fairness with certain legal and practical realities.

Main Provisions

• Prohibition on pay history inquiries: Employers, employment agencies, and labor organizations may not inquire into or require disclosure of an applicant’s pay history (prior or current wages, earnings, benefits, or other compensation) to determine wages or other compensation.

• Definitions: “Pay history” means any prior or current wage, salary, earnings, benefits, or any other compensation about an applicant.

• Exceptions to the prohibition:

  • If pay history is a matter of public record under federal or state law, the prohibition does not apply, so long as the employer did not seek access with the intent of using that pay history to determine wages.
  • If the applicant’s pay rate is established under the terms of a collective bargaining agreement between a public employer and a certified exclusive representative for public employees.

• Voluntary disclosure:

  • If an applicant voluntarily discloses pay history without being prompted, the employer may consider that information to support a wage or salary higher than the initially offered amount.

• Discrimination protections:

  • The bill preserves the right to file wage discrimination claims based on protected characteristics (such as race, color, creed, religion, national origin, sex, gender identity, marital status, public assistance status, familial status, disability, age, sexual orientation, and related categories) as provided in existing law.

• Employer discussions about wages:

  • The bill does not prevent employers from providing information about wages offered for a position.
  • It also allows employers to discuss or inquire about an applicant’s wage expectations or requests.

Significant Changes to Existing Law

• Adds explicit exceptions to the pay history ban for:
  • Pay history that is a public record (with a caveat about the employer’s intent in accessing those records).
  • Pay rates set by a collective bargaining agreement for public employees.
• Allows voluntary disclosure to influence wage offers.
• Maintains and clarifies that anti-discrimination protections still apply in wage decisions.
• Confirms that employers may share wage information and engage in wage discussions with applicants.

Practical Implications

• Job applicants should understand that their pay history generally cannot be used to set future pay, except in the specified public-record or union contexts.
• Employers should avoid asking for pay history to determine pay, but may discuss wages, provide wage information, and discuss expectations.
• If an applicant reveals pay history on their own, it may be used to justify a higher offer.
• The law continues to protect workers from wage discrimination based on protected characteristics.

Relevant Terms pay history wages salary earnings benefits compensation employer employment agency labor organization public record federal law state law public employer collective bargaining agreement exclusive representative public employee voluntary disclosure wage discrimination race color creed religion national origin sex gender identity marital status public assistance familial status disability sexual orientation age wage offers wage expectations