Statute
Classes Protected
- Race, color, religion, sex, sexual orientation, gender identity or expression, disability, age, or country of ancestral origin
Key language on Pay Discrimination
- An employer may not pay any employee “at a wage rate less than the rate paid to employees of another race, or color, or religion, sex, sexual orientation, gender identity or expression, disability, age, or country of ancestral origin for comparable work."
Exceptions for Pay Disparities (Including Affirmative Defenses)
- Seniority system, however, time spent on leave due to a pregnancy-related condition or parental, family, and medical leave shall not reduce seniority
- Merit system
- System which measures earnings by quantity or quality of production
- Geographic location when the locations correspond with different costs of living
- Reasonable shift differentials
- Education, training, or experience that is job-related and consistent with business necessity
- Work-related travel, if the travel is regular and a business necessity
- Any other bona fide job-related factor consistent with business necessity other than a membership in a protected class
Prohibition on Salary History Inquiry
- Employers may not “[r]ely on the wage history of an applicant when deciding whether to consider the applicant for employment” or in determining the wages the applicant will be paid upon hire.
- Employers may not “seek the wage history of an applicant” or require that an applicant’s prior wages meet minimum or maximum criteria as a condition of being considered for employment.
- Employers may consider wage history after an initial offer is made to justify increasing the compensation offered to an applicant if wage history is voluntarily provided without prompting from the employer. After an initial offer, an employer may seek to confirm the wage history of the applicant to support a wage higher than the wage offered.
- “Nothing in this section shall penalize an employer for having knowledge of an employee’s wage history at that employer if the employee currently works for the employer.”
- “An employer may not refuse to interview, hire, promote, or employ an applicant for employment or employee and may not retaliate against that individual because he or she did not provide a wage history or because he or she requested the wage range for a position[.]”
Anti-Retaliation
- Prohibits retaliation
Wage Disclosure Requirements
- Employers must provide a wage range when an employee is hired, a current employee moves into a new position, and/or upon the employee’s request. The employer also must provide a wage range upon an applicant’s request and “should” provide a wage range to an applicant prior to discussing compensation.
- “No employer shall prohibit an employee from inquiring about, discussing, or disclosing the wages of such employee or another employee or retaliate against an employee who engages in such activities.”
Safe Harbor for Pay Evaluations
- An affirmative defense is available to employers if:
- The employer conducts a self-evaluation of its pay practices between January 1, 2023 and June 30, 2026, and within two years of the lawsuit and
- Any wage disparities found as a result of the audit were eliminated within 90 days from the date of completion of its self-evaluation and prior to the lawsuit.
- The law instructs courts to consider the following facts in evaluating the sufficiency of employers’ pay evaluations:
- Whether the audit includes all relevant jobs and employees within those relevant jobs;
- Whether the audit makes a reasonable effort to identify similar jobs and employees using a consistent, fact-based approach;
- Whether the employer has tested explanatory factors for an unbiased and relevant relationship to pay;
- Whether the audit considers all reasonably relevant and available information; and
- Whether the audit is “reasonably sophisticated” in its analysis of potentially comparable work, employee compensation, and permissible reasons for wage differentials.
- After June 30, 2026, employers conducting pay evaluations and remedying any differentials identified as a result will only be relieved of liability for liquidated damages and compensatory damages but will no longer be eligible for an affirmative defense.
Other Key Provisions
- Employers may not reduce any employees’ wages to comply with the Act, and employees may not agree to be paid less than that to which they are entitled under the Act. In addition, employees’ wage histories may not be used to justify a pay differential.
- An employer who discriminates in compensation based on protected class status shall be fined up to $1,000 for a first violation, up to $2,500 if the employer has already discriminated within 5 years prior to the complaint or action being filed, and up to $5,000 if the employer has already discriminated at least twice within 7 years prior to the complaint or action being filed.