AccuSource Blog

Fair Pay Legislation on the Horizon for 2018

In a recent blog Jurisdictions Across The U.S. Implement Fair Chance Regulations, we highlighted a few fair pay laws/acts with effective dates in 2017. However, as we inch closer to the end of the year, it is important for employers to keep fair pay legislation going into effect in 2018 on their radars.

Currently, there are several jurisdictions that will soon ban salary history inquiries and/or implement additional pay equity regulations. A brief overview of these laws and their slated effective dates for 2018 can be found below.

  • California: On October 12, 2017, California Governor, Jerry Brown, signed a state-wide ban on all employer inquiries into a candidate’s salary history. The new law (AB 168) applies to all employers and focuses primarily on banning salary history inquiries and basing a salary offer on past earnings. Effective Date: January 1, 2018
  •  Massachusetts: On August 1, 2016, Massachusetts Governor, Charlie Baker, signed the Act to Establish Pay Equity into law. The new law aims to prevent pay discrimination for comparable work based on gender. Under the law, employees are allowed to freely discuss their salaries with coworkers. Additionally, the law prohibits employers from making salary history inquiries prior to extending an offer, and authorizes the Attorney General to issue regulations surrounding the interpretation and application of the law. Effective Date: July 1, 2018
  • San Francisco: On July 19, 2017, Mayor Ed Lee signed Ordinance No. 170350. The Ordinance, which is scheduled to take effect July 1, 2018, legally prohibits employers from asking about a candidate’s salary history. Additionally, Ordinance No. 170350 prohibits employers, “including City contractors and subcontractors, from disclosing a current or former employee’s salary history without that employee’s authorization unless the salary history is publicly available,” according to the City and County of San Francisco Board of Supervisors. Effective Date: July 1, 2018

Violations of these laws may result in penalties and fines. Employers are encouraged to consult legal counsel when reviewing hiring policies and employment screening programs to ensure regulatory compliance.

For more information about how these laws may affect your organization’s screening program, or AccuSource’s employment screening solutions, contact AccuSource today or reach us by phone at 888-649-6272.


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