An Act Concerning the Disclosure of Salary Range for a Vacant Position
On June 7, 2021, Governor Ned Lamont signed into law House Bill 6380, “An Act Concerning the Disclosure of Salary Range for a Vacant Position.” The bill requires employers of one or more employees to disclose the “wage range” of a position to both prospective and current employees. The bill also modifies the standard for wage discrimination on the basis of sex. The law goes into effect on October 1, 2021.
“Wage Range”
The bill defines “wage range” as:
[T]he range of wages an employer anticipates relying on when setting wages for a position, and may include reference to any applicable pay scale, previously determined range of wages for the position, actual range of wages for those employees currently holding comparable positions or the employer’s budgeted amount for the position.
The law only requires disclosure of wage ranges and not any employee’s actual wages.
Prohibitions
After October 1, 2021, employers may not:
- prohibit employees from discussing or disclosing wages amongst each other;
- prohibit employees from inquiring about another employee’s wages;
- require employees to sign waivers agreeing not to disclose wage information;
- inquire into a prospective employee’s wage and salary history;
- fire, discriminate against, or otherwise retaliate against any employee who discusses, discloses, or inquires about wage information.
When Disclosure Needs to be Made
The title of the bill is slightly misleading. Employers are required to make wage range disclosures to both prospective and current employees, not only for vacant positions.
Employers must disclose the wage range for a position to applicants at the earlier of:
- the applicant’s request or
- prior to or at the time the applicant is made an offer of compensation
Employers must disclose the wage range for a position to current employees upon:
- the hiring of the employee,
- a change in the employee’s position, or
- the employee’s first request
Employees’ Remedies for Violations
The law creates a private right of action for employees against employers who violate the disclosure requirements. Employers may be found liable for compensatory damages, attorney’s fees and costs, and punitive damages. There is a two-year statute of limitations for employees to bring claims after a violation has occurred.
Wage Discrimination
The bill also broadens the standard for wage discrimination on the basis of sex. The bill prohibits employers from providing differential wages “to employees of the opposite sex at such business for comparable work on a job, when viewed as a composite of skill, effort and responsibility and performed under similar working conditions . . . .”. This is an amendment of a pre-existing statute which prohibited employers from providing differential wages to employees of the opposite sex for “equal work.”
The employer still bears the burden to prove a wage differential is not based on sex.
For further information on House Bill 6380, please contact Christopher L. Brigham, Chair of the Employment Law Practice Group at Updike, Kelly & Spellacy, P.C. at (203) 786-8310 or cbrigham@uks.com, Andrew L. Houlding, Principal in the Employment Law Practice Group at (203) 786-8315 or ahoulding@uks.com, Valerie M. Ferdon, Associate Attorney in the Employment Law Practice Group at (860) 548-2607 or vferdon@uks.com; or Jeffrey Renaud, Associate Attorney in the Employment Law Practice Group at (860) 548-2629 or jrenaud@uks.com.
Updike, Kelly & Spellacy, P.C. would like to thank summer associate Olivia Benson for her contribution to this client alert.
Disclaimer: The information contained in this material is not intended to be considered legal advice and should not be acted upon as such. Because of the generality of this material, the information provided may not be applicable in all situations and should not be acted upon without legal advice based on the specific factual circumstances.