Sponsors (2)
The bill shifts hiring away from relying on prior pay to improve pay equity and protect applicants' negotiation rights, while imposing new compliance, enforcement, and litigation costs on employers that could alter hiring practices.
Low-income workers and other job applicants are less likely to have starting pay anchored to prior lower wages, improving chances of higher initial offers.
Creates a private right of action with statutory damages and attorneys' fees, making it easier for affected applicants to obtain remedies and deterring unlawful pay-history practices.
Workers and applicants gain protection from retaliation for opposing unlawful wage-history practices, making enforcement safer and reducing fear of adverse actions for complaining.
Employers, including many small businesses, face heightened litigation risk and potential financial liability (including civil penalties or special damages up to about $10,000 plus attorneys' fees) for violations.
Employers will incur compliance costs and ongoing administrative burdens to change hiring processes and recordkeeping, which can slow recruitment and raise operating costs.
Some employers may respond by narrowing individualized pay negotiations, relying more on fixed pay scales, or reducing initial offers to limit liability, which could restrict bargaining and lower pay for certain 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 about, seeking, or relying on a job applicant’s prior wage or salary history when deciding whether to hire or what to pay. It allows narrowly limited exceptions for voluntary post-offer disclosures made to request a higher wage and for employers to confirm voluntarily provided wage information. Violations carry civil penalties, damages for affected individuals, injunctive relief, and a private right of action for employees and applicants.