Pay Equity Laws
What is pay equity?
Pay equity is a means of eliminating gender and ethnic discrimination in the wage-setting system. In this context, the criteria which employers use to determine wages must be gender- and ethnicity-neutral.
What is pay equity legislation?
The overarching purpose of pay equity legislation is to prohibit employers from discriminating on the basis of gender or ethnicity in the payment of wages. To assist candidates and clients alike throughout the hiring process, we’ve compiled relevant information associated with pay equity legislation enacted around the United States. This webpage includes updated information, including:
- Bill names
- Effective start dates
- Violations and penalties
- Exceptions related to voluntary disclosure and interview guidelines
If a state or territory is not included in the dropdown below, there is no pending legislation.
*This is not intended to be legal advice.
Location
Albany
Bill
Local Law No. P for 2016
Effective
12/17/2017
Violations
Employers of at least four employees may not seek pay history of a candidate from any current or former employer.
Penalties
Compensatory damages, reinstatement (with or without back pay) and oversight by Albany Commission on Human Rights. Potential private right of action.
Voluntary Disclosure
This is not presently addressed.
Interview Guidelines
(not addressed)
Location
New York City
Bill
Intro. 1253
Effective
10/31/2017
Violations
Seek pay history of a candidate, including wages, benefits and other compensation; search for publicly available records to obtain compensation history; or rely on salary history during any stage of the hiring process unless disclosed willingly
Penalties
Salary inquiries – up to $125,000 for civil penalties; up to $250,000 for “intentional malicious violations”.
Voluntary Disclosure
Employers may rely on information gathered through voluntary disclosure. This is not a violation.
Interview Guidelines
Employers may engage candidates in discussions about salary, benefits and other compensation expectations without violating the law.
Location
Statewide
Bill
2019-6549
Effective
1/6/2020
Violations
Employers may not rely on applicant’s compensation history in determining whether to hire an applicant, or wages or salary for that individual; seek or require pay history as condition of offer of employment, or of employment or promotion; seek or require pay history from a current or former employer; retaliate based on pay history; retaliate because of refusal to provide pay history.
Penalties
An applicant, or a current or former employee, may bring a civil action for damages sustained as a result of the violation. The court may award injunctive relief and reasonable attorneys’ fees.
Voluntary Disclosure
Not a violation.
Interview Guidelines
(not addressed)
Location
Suffolk County, New York
Bill
“RISE” Act
Effective
6/30/2019
Violations
May not inquire about applicant’s compensation history, seek compensation history of a candidate from any publicly available record search, or rely on compensation history to determine wages.
Penalties
Civil penalty of $5,000 for the first offense, $10,000 for the second offense, and $20,000 for the third offense; diversity training.
Voluntary Disclosure
This is not presently addressed. Not a violation if done to comply with federal, state, or local laws which mandate salary disclosures for employment purposes.
Interview Guidelines
(not addressed)
Location
Westchester County, New York
Bill
Wage History Anti-Discrimination Law
Effective
7/9/2018
Violations
Employers of at least four employees may not seek pay history of a candidate from any current or former employer.
Penalties
Reinstatement, back pay, compensatory damages, costs, reasonable attorney’s fees, punitive damages, oversight by Westchester County Human Rights Commission. Potential private right of action.
Voluntary Disclosure
Not a violation to rely on a voluntary disclosure to set compensation.
Interview Guidelines
(not addressed)