California recently passed AB 2282 to clarify some of the items in its Salary History Law, which became effective January 1st of this year. The following terms are now defined:
- Applicant: only individuals who seek new employment with the employer, not current employees applying for new positions with the same employer.
- Pay scale: a salary or hourly wage range, which does not include bonuses or equity ranges.
- Reasonable Request: a request made after the applicant has completed the initial interview.
Additionally, AB 2282 clarifies that employers may ask about an applicant’s salary expectations for the position. Finally, the new legislation addresses the California Equal Pay Act: “Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employee’s existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.” The factors listed include: (1) a seniority system, (2) a merit system, (3) a system that measures earnings by quantity or quality of production; and (4) a bona fide factor other than race or ethnicity, such as education, training, or experience.
For more information on these and other laws and whether they affect your state, visit our resource guide at https://www.hireimage.com/background-check-resource-library/