Sponsors (3)
The bill aims to reduce pay discrimination and boost starting wages by limiting use of applicants' past pay, but does so at the cost of increased employer compliance, legal exposure, and potential hiring delays.
Job applicants — especially women and racial-ethnic minorities — will be more likely to receive salary offers based on the role or market rather than their past pay, reducing pay discrimination.
Prospective employees — particularly low- and middle-income workers — gain a stronger bargaining position, which can raise starting wages and improve overall pay equity.
Small-business owners and other employers face higher compliance costs and risk civil penalties (up to $10,000 per violation), increasing the administrative and financial burden of hiring.
Employers — particularly those at scale — face increased risk of litigation and class actions that could raise legal costs and prompt more cautious or restrictive hiring practices.
Employers and job applicants may see slower hiring or verification processes because employers can only confirm voluntarily provided wage history after making an offer, complicating background checks and causing potential delays.
Based on analysis of 2 sections of legislative text.
Prohibits employers from seeking, relying on, or using applicants' prior wage history to set pay, with narrow post-offer exceptions and civil penalties for violations.
Official title: To amend the Fair Labor Standards Act of 1938 to prohibit certain practices by employers relating to restrictions on discussion of employees' and prospective employees' salary and benefit history, and for other purposes.
Introduced March 18, 2025 by Eleanor Holmes Norton · Last progress March 18, 2025
Prohibits employers from asking about, seeking, or relying on a job applicant’s prior wage history when deciding whether to hire or how much to pay, with narrow exceptions when an applicant voluntarily shares wage history after an offer is made or to confirm voluntarily provided information. Creates civil penalties for employers who violate the rule, allows affected applicants or employees to sue for damages and injunctive relief, and bans retaliation for asserting rights under the law.