Connecticut Enacts Law Barring Employers from Asking About Prior Compensation
Beginning on January 1, 2019 Connecticut employers of all sizes will no longer be allowed to inquire into prospective employees’ past compensation and compensation structures. On May 22, 2018 Connecticut Governor Daniel Malloy signed into law the “Act Concerning Pay Equity,” a new law aimed at protecting prospective employee privacy with respect to past compensation.
On May 22, 2018, Connecticut Governor Daniel Malloy signed into law the Act Concerning Pay Equity
Unlike some other similar laws around the country, Connecticut’s law will likely apply to any employee who files an application or interviews with a company in that state. In addition to inquiries about wage and salary history, the new law will prohibit employers from asking questions that may reveal the type and structure of compensation and the value of individual elements of how an employee was paid at his or her former jobs.
Important for employers to understand, violations of this new law will be serious, and can have financial implications if it is not followed. Indeed, the Act Concerning Pay Equity creates a private right of action for prospective employees to bring a claim against the employer. This claim will likely also be tied to discrimination or other employment law claims that could subject an employer to very costly litigation far into the future, as the claims carry a two-year statute of limitation.
Now may be a good time to review your company’s hiring policies
Now may be a good time to review your company’s hiring policies and/or application materials, and to re-train hiring managers to ensure they are no longer asking questions about salary history or compensation structure. It can be easy to fall into traps during an interview when employees begin asking questions about how they will be paid at their new job, if hired. Unless an employee offers up his prior pay unsolicited, your managers should never ask any questions that may even be probative of salary history or past compensation.
We strongly recommend consulting with our representatives to learn more about the training resources Syntrio offers to prevent wage and hour issues in the workplace. Syntrio’s subject matter experts are well in tune with changes to the law, and can help you and your company craft a plan of prevention that suits your business needs, no matter its size. We invite you to contact us today at 888-289-6670 or by filling out the online form available here.
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