Fiscal Summary

NOT SIGNIFICANT

Bill Summary

As described below, this bill places certain restrictions on the actions of an employer, which is defined in the bill as a person or entity that employs one or more employees and includes this state and its political subdivisions.

COMPENSATION HISTORY AND WAGE RATES

This bill prohibits an employer from doing the following:

(1) Asking for, or requiring, a prospective employee to provide the prospective employee's compensation history;

(2) Considering, or relying on, a prospective employee's compensation history in determining the compensation for the prospective employee;

(3) Retaliating or discriminating against a prospective employee for failing to disclose the prospective employee's compensation history;

(4) Discharging, or otherwise discriminating or retaliating against, an employee for asserting a right provided in (1)-(3) or (5)-(7);

(5) Discharging, disciplining, discriminating against, coercing, intimidating, threatening, or interfering with an employee because the employee inquired about, disclosed, compared, or otherwise discussed the employee's wage rate;

(6) Prohibiting, as a condition of employment, an employee from disclosing the employee's wage rate; or

(7) Requiring an employee to sign a waiver or other document that prohibits the employee from disclosing the employee's compensation history or wage rate; or purports to deny the employee the right to disclose such compensation history or wage rate.

However, this bill clarifies that an employer does not violate (1)-(7) above if the prospective employee voluntarily, and without prompting, provides information about the prospective employee's compensation history.

This bill authorizes an employee, or individual affected by a violation, to bring a civil cause of action within two years after the alleged violation occurs. This bill clarifies that an employee is not precluded from asserting another employment claim available under state or federal law. If the court finds that an employer violated this bill, then the court may order the following remedies:

(1) Equitable relief, including reinstatement of employment, promotion, pay increase, or payment of back-pay for a duration not to exceed three years; and

(2) The employee or individual's court costs, including reasonable attorneys' fees.

This bill authorizes the court to examine evidence to determine whether the act or omission giving rise to the violation was in good faith and that the employer has reasonable grounds for believing that the employer did not violate (1)-(7) above. In determining whether the employer's violation was made in good faith, the court may consider evidence that within two years prior to the date of the commencement of the civil action brought, the employer completed a thorough and comprehensive pay audit of its workforce, with the specific goal of identifying and remedying unlawful pay disparities.

ADVANCEMENT OPPORTUNITIES AND OPENINGS

This bill requires an employer to do the following:

(1) Provide notice to all of the employer's employees of employment advancement opportunities and openings, including the potential range of wage rates that the employer reasonably believes that the opening or opportunity will pay and other benefits that will be offered. The notice must be provided to the employees on the same calendar day and prior to making a promotion decision; and

(2) Post the notice described in (1) in a conspicuous, easily accessible location for employees. In addition, the employer must provide notice electronically, including by email or other posting, if the employer customarily communicates employment information to employees electronically.

This bill authorizes an employee who believes they have been affected by a violation to submit a written complaint to the department of labor and workforce development ("department"), on a form prescribed by the department. The employee must submit the complaint within one year of the date that the employee learned of the violation, and the department must allow a form to be submitted electronically.

This bill requires the department to investigate such complaints. If the department finds a violation, then the department may order the employer to pay a fine between $500-$10,000 per violation. For purposes of determining the number of violations that have occurred, an employer's failure to:

(1) Post or otherwise provide the notice for one promotional opportunity is considered one violation; and

(2) Provide the potential range of wage rates that the employer reasonably believes that the opening or opportunity will pay the hired applicant is considered one violation.

APPLICABILITY

This bill applies to prohibited conduct occurring on or after July 1, 2023.