AB 168 was approved by Governor Brown on October 12, 2017 which prohibits employers from seeking or taking into consideration an applicant’s prior compensation and benefits when determining whether to hire the applicant, and in setting the applicant’s compensation and benefits. The new law creates Labor Code section 432.3. This Friday’s Five covers five issues of the new law that employers must understand:
1. The law applies to all employers, regardless of size, effective January 1, 2018.
2. Employers may not rely on salary history information of an applicant in determining whether to offer employment and in determining the about of compensation to offer.
3. Employers may not seek salary history information, which includes compensation and benefits, about the applicant.
4. Upon a reasonable request, an employer must provide the “pay scale” for the position to an applicant.
5. Nothing in the law prohibits employees from voluntarily disclosing salary history to a prospective employer.