California recently expanded its Fair Pay Act to include a provision that will prohibit employers from using prior salary as a basis to justify pay disparities, in an effort to close the gender wage gap (Assembly Bill No. 1676, effective January 1, 2017). While employers will not be prohibited from asking applicants for salary history, they should carefully consider whether this information may bias their decisions on pay rates for incoming applicants. Wages should be negotiated and established based on the “requirements, expectations, and qualifications of the person and the job in question” (see citation above).
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