Prohibits employers from using a prospective employee's wage history to determine wages, unless the employee voluntarily provides the information to support a higher wage after a job offer has been made with compensation.
Eleanor Norton
Representative
DC
The Salary History Question Prohibition Act amends the Fair Labor Standards Act of 1938, prohibiting employers from using a prospective employee's wage history when considering them for a job or determining their wages, unless the employee voluntarily provides it after a job offer to support a higher wage. The act also prohibits employers from seeking a prospective employee's wage history from them or past employers under similar conditions and protects employees from retaliation for opposing unlawful practices. Penalties for violations include civil penalties, damages to affected employees, and the possibility of lawsuits. "Wage history" is defined as wages paid by current or previous employers.
Bill Proposes Ban on Salary History Questions, Sets $5K-$10K Fines for Violations
A proposed law, the "Salary History Question Prohibition Act," aims to change a common hiring practice by making it illegal for employers to ask about or use your past salary information when deciding whether to hire you or how much to pay you. It amends the Fair Labor Standards Act, defining "wage history" simply as what past employers paid you. The core idea is to base compensation on the job's value and your qualifications, not on potentially lower wages earned previously.
Say Goodbye to the Salary Question?
Under this bill, employers generally couldn't ask for your salary history – not on applications, not in interviews. They also couldn't use any past wage info they might have to screen you out or decide your starting pay. There's a specific exception: after you receive a job offer that includes compensation details, you can choose to share your prior salary if you think it helps negotiate a higher wage. The bill also explicitly protects you from retaliation if you push back against unlawful practices related to this rule (section 15(a)(3) protection).
Putting Teeth Into It: Penalties for Violations
This isn't just a suggestion; the proposal includes financial penalties for employers who don't comply. A first offense could cost an employer a civil penalty of $5,000, with subsequent violations potentially reaching $10,000. Beyond government fines, the bill allows affected job applicants or employees to sue. If successful, they could receive special damages up to $10,000, plus attorney's fees, and potentially other relief like court orders to stop the illegal practice.
Shifting the Focus: From Past Pay to Present Value
The goal here seems to be leveling the playing field, particularly for individuals who might be stuck in lower pay cycles due to historical wage gaps. By removing past salary from the equation, the focus shifts to what the job is worth and what skills the candidate brings now. While this could mean fairer starting salaries for many applicants, it also requires employers to adjust their hiring and compensation strategies, relying more on market data, role requirements, and candidate qualifications rather than past paychecks.