By Jeffrey A. Wortman and Christopher Im

Seyfarth Synopsis: California Governor Brown signed into law last week Assembly Bill No. 2282 to clarify previously passed legislation that prohibits inquiries into an applicant’s salary history. Read on for a recap of Assembly Bill No. 2282.

When AB 168 was signed into law in October 2017, California prohibited employers from asking job applicants for “salary history information.” Under this legislation, California employers must provide “applicants” with the “pay scale” for a position upon “reasonable request.” The law was rather unclear, however, about what each of these three terms meant. On July 18, 2018, Governor Brown signed new legislation, Assembly Bill 2282, designed to clarify those terms and other items in AB 168.

For example, under AB 168, it was not clear whether the term “applicant” meant only external applicants for a position or also current employees applying for the position. AB 2282 clarifies that an “applicant” is an individual who seeks employment with the employer, not a current employee.

Next, it was not clear what information an employer would have to supply when a reasonable request was made for the “pay scale” of a position. AB 2282 defines “pay scale” as a salary or hourly wage range and clarifies that the definition of “pay scale” does not include bonuses or equity ranges.

AB 2282 also clarifies what constitutes a “reasonable request” for pay scale information. A “reasonable request” is defined as a request made after the applicant has completed the initial interview.

Additionally, AB 2282 clarifies that although AB 168 prohibits employers from asking for the applicant’s salary history information, employers may ask about an applicant’s salary expectations for the position.

The new legislation addresses aspects of the California Equal Pay Act as well. It was unclear under what circumstances an employer could use prior salary to justify a disparity in pay. The new legislation attempts to clarify this: “Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employee’s existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.” Those factors are (1) a seniority system, (2) a merit system, (3) a system that measures earnings by quantity or quality of production; and (4) a bona fide factor other than race or ethnicity, such as education, training, or experience.

For Seyfarth’s full 2018 California Legislative Update, please click here.

For more information on this topic, please contact the authors, your Seyfarth Attorney, or any member of Seyfarth Shaw’s Labor & Employment Team.

Today, April 10th, is Equal Pay Day. At Seyfarth Shaw, we are commemorating Equal Pay Day with the release of two publications (click through below).

  1. The Trends and Developments in Pay Equity Litigation Report

This publication provides a brief overview of recent trends and developments in pay equity litigation and analyzes significant decisions and filings that have had an impact on those issues.

  1. The 2018 50 State Pay Equity Desktop Reference

This Desktop Reference was aimed at answering the most common questions we are asked about regarding the patchwork of different state laws that touch on pay equity.

We hope that you will find these resources helpful as you navigate the rapidly developing landscape of pay equity legislation and decisional law.

Please feel free to reach out to your Seyfarth attorney, members of Seyfarth’s Pay Equity Group, or the Group’s co-chairs Annette Tyman and Christine Hendrickson, with any questions.

Seyfarth Synopsis: Seyfarth Shaw’s Pay Equity and International Law Groups celebrated International Women’s Day a day early with a webinar on Wednesday, March 7, 2018 entitled “Pay Equity Around the Globe”.

Tessa Cranfield, Marjorie Culver, and Christine Hendrickson had a crowd for the webinar on global pay equity but in case you missed it, here are the slides from the webinar. Some of the highlights of the webinar included:

  • A discussion of the key trends in global pay equity, which included strengthened anti-discrimination laws, pay transparency, and pay reporting requirements;
  • An overview of key pay equity laws in Europe (focusing on Iceland, Germany, France, and the United Kingdom) and APAC and LATAM (focusing on Australia, China, India, and Brazil); and
  • Practical tips on how to undertake global pay equity analyses, focusing on the “who”, “what”, and “how” to conduct these reviews.

If you are considering undertaking a global pay analysis — and is there a better way to celebrate International Women’s Day? — reach out to Seyfarth’s Pay Equity Group and they will be happy to guide you through this process.