Alabama has enacted legislation (House Bill 225) that prohibits pay discrimination based on sex and race, as well as retaliation against applicants who refuse to disclose their pay history. House Bill 225 took effect on Sept. 1, 2019.
Pay Discrimination:
House Bill 225 generally prohibits employers from paying any employee less than employees of another sex or race for equal work, requiring equal skill, effort, education, experience, and responsibility, that is performed under similar working conditions in the same establishment.
There are exceptions to the prohibition for payments made under:
- A seniority system.
- A merit system.
- A system that measures earnings by quantity or quality of production.
- A differential based on any factor other than sex or race.
Pay History:
The law also prohibits employers from refusing to interview, hire, promote, employ or otherwise retaliate against an applicant because they fail to provide pay history information.
Compliance Recommendations:
Alabama employers should review policies, practices, and training to ensure compliance with House Bill 225. Additionally, given the prohibition on taking adverse action against applicants for failing to disclose their pay history, employers may want to consider removing salary history questions from application forms and interviews. Please contact your dedicated service professional with any questions.