Sponsors (2)
The bill advances pay equity and protects applicants by banning use of wage history and enabling enforcement, but shifts costs and litigation risk onto employers, which could raise hiring friction and administrative burdens.
Jobseekers — especially women, low-wage workers, and low-income and middle-class families — are more likely to receive higher starting pay and narrower pay gaps because employers can no longer rely on prior wage history when setting pay.
Applicants and employees are protected from retaliation for opposing or reporting improper wage-history practices, making it safer to assert pay-related rights.
Employees and prospective employees can enforce the wage-history ban through a private right of action with statutory damages and attorneys' fees, increasing the likelihood of meaningful remedies for violations.
Small businesses and other employers face a higher risk of litigation (including class actions) that could increase legal costs and make employers more cautious in hiring or impose added HR procedures.
Employers — including small businesses and ultimately taxpayers/customers — will incur new compliance costs and exposure to fines (up to $10,000 per violator), raising administrative burdens around hiring.
Employers lose access to applicants' wage-history information, which may complicate pay-setting in complex cases and could lead to less tailored (or more cautious) offers for some applicants.
Based on analysis of 2 sections of legislative text.
Prohibits employers from requesting or using a job applicant’s prior wage history (with narrow post-offer voluntary exceptions) and creates civil penalties and a private right of action.
Introduced March 18, 2025 by Eleanor Holmes Norton · Last progress March 18, 2025
Prohibits employers from asking about, relying on, or conditioning hiring or pay decisions on a job applicant’s prior wage or salary history. Employers may only consider prior wage information if a candidate voluntarily provides it after a formal offer, and then only to justify paying the applicant more. The bill also bans retaliation for opposing these practices and creates a private right of action with civil penalties, statutory damages, attorneys’ fees, and injunctive relief against violating employers, including public agencies. The measure amends the Fair Labor Standards Act to add the prohibition and enforcement tools: a $5,000 fine for a first offense, additional fines for repeat offenses (up to specified limits), and potential special damages up to $10,000. Employees and prospective employees can sue in federal or state court, including on behalf of a class or as representatives.