New Employers Can No Longer Inquire About Past Compensation

Effective January 1, 2018, employers can no longer seek or take into consideration a job applicant's prior compensation and benefits when determining to hire the applicant, and in setting the applicant's compensation and benefits.  The new law, which is codified in Labor Code section 432.3, specifically applies as follows:

  1. An employer cannot rely on salary history information of an applicant in determining whether to offer employment and in determining the amount of compensation to offer.
  2. An employer cannot seek salary history information, which includes compensation and benefits, about the applicant.
  3. An employer must provide the "pay scale" for the applied position to the applicant upon a reasonable request.
  4. The new law is effective January 1, 2018 and applies to all employers regardless of size.
  5. Nothing in the law prohibits employees from disclosing salary history to a prospective employer if they voluntarily choose to do so.