California Bans Employers from Seeking Salary History of Applicants

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On October 13, California Governor Jerry Brown signed into law Assembly Bill 168 (AB 168), which further restricts employers’ use of salary history information. California’s Fair Pay Act currently prohibits employers from relying on an employee’s salary history to justify pay discrepancies among employees of different genders, races, and ethnicities.1 Effective January 1, 2018, the new law has significant implications for compensation practices in California — where employers should take practical steps to ensure proper compliance — as well as throughout the United States.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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