California recently passed legislation which bars employers from relying on an applicant’s salary history in determining whether to extend an employment offer or the value of a salary offer. The new law applies to all California employers, including loan originator employees.
The law prevents employers and their agents from asking—orally or in writing—about an applicant’s former salary history, including compensation and benefits. Additionally, it requires employers to provide the pay scales for vacant positions upon an applicant’s request.
However, the law provides a small exception. If an applicant offers salary history information to a prospective employer voluntarily and “without prompting,” the employer may still consider or rely on that information in determining the salary for that applicant, but not in determining whether to extend an employment offer.
The new law can be found here.