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New Employment Law effective January 1st. 2018 will change the way we interview

Post Date: November 3rd, 2017

 

New Employment Law effective January 1st. 2018

will change the way we interview

 

Asking for salary history on an employment application form or during the interview process is not allowed and unlawful.  

 

Prohibition on Salary History Inquiries and a New Duty to Disclose “Pay Scales” (AB 168)

Effective January 1, 2018, employers are barred from seeking or inquiring into a job applicant’s salary history, compensation and benefits. Further, employers must now disclose pay scales for a position upon request from an applicant.

AB 168 will add section 432.3 to the California Labor Code and bar employers from directly or indirectly seeking, or inquiring into, a job applicant’s salary history information (including compensation and benefits). It will also make it unlawful for employers to use an applicant’s salary history information to determine whether to extend a job offer or to decide what salary to offer an applicant.

Supporters of the law believe that the measure will help improve the pay rate gender wage gap across all industries.

Additionally, the law does not prohibit applicants from disclosing their salary history information “voluntarily and without prompting.” In such circumstances, AB 168 permits a prospective employer to consider or rely upon the voluntarily-disclosed information when determining an applicant’s compensation, subject to the Equal Pay Act’s caveat that prior salary cannot, by itself, be used as a justification for any disparity in compensation between employees of difference races, sexes, or ethnicities.

Also, while AB 168 deals primarily with prohibitions against seeking out or using salary history information, it also requires companies to disclose the “pay scale” for a position to any applicant for employment, “upon reasonable request.”

 

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