Sponsors (2)
The bill increases pay equity and starting-pay bargaining power for job applicants (notably women and minorities) but does so at the cost of added compliance, penalty and litigation risks for employers and potential hiring delays.
Women, racial and ethnic minorities, and other job applicants are less likely to have pay set by prior salary because offers must be based on the role/market, which reduces pay discrimination and promotes pay equity.
Prospective employees—particularly low- and middle-income workers—gain stronger bargaining power and are likelier to receive higher starting wages and fairer initial pay offers.
Employers—especially small businesses—face higher compliance costs, exposure to civil penalties (up to $10,000 per violation), and greater litigation risk (including class actions and attorneys' fees), which could raise administrative and hiring costs or discourage hiring.
The narrow exception that lets employers confirm voluntarily provided wage history only after making an offer may complicate background checks and slow hiring processes, delaying placements and adding administrative steps for employers and applicants.
Based on analysis of 2 sections of legislative text.
Introduced March 18, 2025 by Eleanor Holmes Norton · Last progress March 18, 2025
Prohibits employers from asking for or using an applicant's salary history to set pay, allows limited voluntary disclosure after an offer, and creates civil penalties and private lawsuits.
Prohibits employers from seeking, relying on, or using a job applicant’s prior wage or salary history to determine hiring or pay. It allows limited exceptions only when an applicant voluntarily provides wage history after receiving a job offer (and the employer may use that information only to justify a higher wage) or to confirm voluntarily provided information after an offer. The measure bans retaliation for people who oppose violations or pursue remedies, creates a private right of action in state or federal court, and imposes civil penalties and damages for violations (including a $5,000 first-offense fine, additional per-offense fines up to $10,000 total, and potential special damages up to $10,000 plus attorneys’ fees and injunctive relief).