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California Bans Inquiries About Salary History During Hiring Process

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The California Legislature recently enacted Assembly Bill (AB) 168, impacting the types of questions employers may ask job applicants about their prior salary information, effective January 1, 2018.

AB 168 makes it unlawful for employers to ask applicants – either orally or in writing – about their prior salary information in determining whether to offer employment or what salary to offer. Salary information includes an applicant’s rate of compensation as well as other benefits. There are two important exceptions.  First, employers may review and consider salary history information that is publicly available pursuant to federal or state law. Second, salary history may be discussed if an applicant “voluntarily and without prompting” discloses his or her history to a potential employer.  In that event, the employer may consider and rely on that history in setting the applicant’s salary.

For more information, you can read the text of AB 168 here.