On October 12, 2017, California became the fourth state to outlaw inquiries into an individual’s salary history. Assembly Bill 168 (AB 168), which takes effect on January 1, 2018, will apply to all employers, including state and local governments.
The new law continues the expansion of equal pay protections in California and furthers the state’s effort to address the gender pay gap by imposing additional restrictions on employers’ pre-employment communications with applicants for employment. Specifically, under AB 168, an employer may not rely on an applicant’s prior salary history (which includes compensation and benefits) “as a factor in determining whether to offer employment . . . or what salary to offer an applicant.” Employers also cannot seek such information about an applicant whether sought orally or in writing, personally or through an agent. Upon reasonable request, employers must; however, provide an applicant applying for employment the pay scale for the position.
Employers are allowed to consider and rely on an applicant’s salary history information if it is disclosed “voluntarily and without prompting”. Salary history information that is available to the public pursuant to state or federal law may also be reviewed and considered in setting an applicant’s salary.
Coverage: Employers with employees in California.
Effective: January 1, 2018
Action Required: In anticipation of the effective date, you should familiarize yourself with your new obligations under the law. In order to ensure prohibited information is not solicited, you should also review and modify/revise your existing employment applications, policies and practices, and processes for interviewing job applicants, negotiating and setting compensation, and verifying prior employment. Please note that the most recent version of the model employment application, available in the Forms Library, does not include questions that seek an applicant’s salary history.
As always, please contact your HR Business Partner if you have any questions.