Highlights:
- New York and Delaware amended current laws making salary history inquiries an unlawful discriminatory practice.
- Oregon, Delaware, Massachusetts and San Francisco adopt new wage equity laws.
- A number of other states and major cities are considering similar laws.
Effective Dates:
- October 1, 2017 - New York City and Oregon
- December 1, 2017 - Delaware
- July 1, 2018 - Massachusetts and San Francisco
- January 1, 2019 - Oregon (protected classes)
Overview
When applicable, employers must comply with their state and local laws in addition to the Federal Equal Pay Act. When both federal and local laws differ, the law that provides the greater protection or benefit to the employee applies.
Employer Action Steps
Eliminate prohibited salary history inquiries.- Update job applications and other employment forms to comply with pay equity laws.
- Train recruiters and hiring managers regarding applicable pay equity laws.
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State Laws
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New York City
Effective date:
Oct. 1, 2017
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An amendment to the New York City
Human Rights Law prohibits employers from inquiring into a candidate’s salary
history as an unlawful discriminatory practice.
Covered Employers: New
York City employers and employment agencies with four or more employees. Individuals employed by a parent, spouse
or child, and individuals engaged in domestic service are not considered
employees under this amendment.
Covered Individuals: Candidates
and new hires during the hiring process, except internal transfers or
promotions, when public employees’ salaries are determined by collective
bargaining or when disclosure of salary history is mandated by law.
Requirements: A
covered employer is prohibited from inquiring about or relying on a
candidate’s salary history when determining a salary offer.
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Oregon
Effective dates: Salary inquiries Oct. 1, 2017
Protected classes and posting requirements Jan. 1, 2019
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In addition to prohibiting salary history
inquiries, the Oregon Equal Pay Act of 2017
extends pay equity protections to nine additional protected classes.
Covered Employers: All Oregon employers.
Covered Individuals: All Oregon job
applicants.
Requirements: Effective Oct. 1, 2017, employers are
prohibited from inquiring about an applicant’s salary history. Effective Jan. 1, 2019, employees who perform
comparable work cannot be paid different pay rates based on race, color,
religion, sex, sexual orientation, national origin, marital status, veteran
status, disability or age.
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Delaware
Effective date:
Dec. 1, 2017
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An amendment to Title 19 of the
Delaware Code prohibits employers from asking a candidate’s compensation
history during the interview process.
Covered Employers: All
Delaware employers and hiring agencies.
Covered Individuals: All
Delaware job candidates.
Requirements:
Employers are prohibited from making inquiries concerning a candidate’s
compensation history, using that history to screen candidates or requiring
that prior compensation satisfy minimum or maximum criteria.
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Massachusetts
Effective date:
July 1, 2018
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The Pay Equity Act addresses equal pay
for comparable work, allowable variations in wages, pay secrecy policies and
using salary history in the hiring process.
Covered Employers: All
Massachusetts employers.
Covered Individuals: All
Massachusetts employees and candidates.
Requirements: Employers
are prohibited from inquiring about or relying on a candidate’s salary
history during the hiring process.
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San Francisco
Effective date:
July 1, 2018
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The Parity in Pay Ordinance prohibits employers
from making inquiries concerning a job applicant’s salary history.
Covered Employers: San Francisco
employers, those contracting with the city and their agents.
Covered Individuals: All job applicants,
including temporary or seasonal workers.
Requirements: Employers are
prohibited from asking an applicant’s salary history. Salary history may not
be considered in the hiring process or when determining a salary offer.
Employers are prohibited from disclosing a current or former employee’s
salary history without prior authorization, unless the information is
publicly available.
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In addition to the state and local laws mentioned above, employers should be aware of the following federal laws that regulate employment discrimination and other aspects of the hiring and employment processes.
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Equal Pay Act
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The
Equal Pay Act (EPA) requires that men and women receive equal pay for equal
work.
Covered
Employers and Employees: Virtually all employers and employees.
Requirements: Employers
are required to pay equal pay for equal work, regardless of gender. Men and
woman in substantially equal jobs, those requiring equal skill, effort, and
responsibility and performed under similar conditions at the same workplace,
must be paid equally.
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Title VII, ADEA, ADA
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Title
VII, the Age Discrimination in Employment Act (ADEA) and the Americans with
Disabilities Act (ADA) prohibit compensation discrimination based on race,
color, religion, sex, national origin, age or disability. There is no
requirement that the jobs be substantially equal.
Covered Employers and
Employees: Title VII and ADA, all employers with 15 or more
employees. ADEA, all employers with 20 or more employees.
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Executive Order 11246
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Executive Order 11246 prohibits discrimination in employment
decisions based on race, color, religion, sex, sexual orientation, gender
identity or national origin.
Covered Employers and
Employees: Federal contractors and federally assisted construction
contractors and subcontractors, who do over $10,000 in government business in
one year.
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This Compliance Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. Published with permission for use by clients of BB&T of California.
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