Connecticut’s New Pay Equity Law

By C. Scott Schwefel

Effective, January 1, 2019, employers may no longer ask about an applicant’s salary history.  “An Act Concerning Pay Equity,” was signed into law on May 22, 2018 and prohibits an employer to inquire, or direct a third party to inquire, about a prospective employee’s wage and salary history. 

The law does not apply if the prospective employee voluntarily discloses his or her wage and salary history.  While the law does not prohibit an employer from asking about past stock options or other equity incentives, the applicant cannot be asked to specify their value.

The law provides prospective employees the right to bring an action, within two years, against an employer who violates any of the law’s provisions.  Penalties to employers who violate the law include compensatory damages, punitive damages, and attorney’s fees and costs.

The law supplements the state’s existing wage information law, which currently makes it unlawful:

• To prohibit an employee from disclosing or discussing the amount of his or her wages or the wages of another employee;

• To prohibit an employee from inquiring about the wages of another employee;

• To require an employee to sign a waiver or other document that denies the employee his or her right to disclose or discuss the amount of his or her wages or the wages of another employee;

• To require an employee to sign a waiver or other document that denies the employee his or her right to inquire about the wages of another employee;

• To discharge, discipline, discriminate against, retaliate against or otherwise penalize any employee who discloses or discusses the amount of his or her wages or the wages of another employee; and

• To discharge, discipline, discriminate against, retaliate against or otherwise penalize any employee who inquires about the wages of another employee.

Employers should review their interview policies and written job applications so as to ensure compliance with the new law. If you would like more information regarding the law, please contact Scott Schwefel at (860) 606-1712 or scott@shipmanlawct.com . You may also contact the Shipman Shaiken & Schwefel, LLC attorney with whom you usually work to discuss a comprehensive approach for complying with state and federal laws and regulations governing your workplace.