Benefits and Compensation

California, NYC Consider Limiting Use of Salary History

By Kate McGovern Tornone, Editor

Employers in California and New York City may soon face new limits on the use of applicants’ salary history.

California’s legislature recently approved a bill aimed at ensuring employers do not pay female employees less than their male colleagues because of their previous salaries. It sent the legislation to the state’s governor August 29.

Similar legislation pending before New York’s city council would prohibit employers from requesting applicants’ pay history.

The bill (Int 1253-2016), introduced August 16, also would prohibit employers from searching publicly available records for an applicant’s salary history. And if an employer is already aware of a prospective employee’s salary history, the bill would prohibit reliance on that information in determining his or her salary.

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