- Prohibit employers from asking prospective or current employees for their salary history before making a job or salary offer; and
- Create fines up to $10,000 for violations, including a private right of action worth up to $10,000 in damages plus attorney's fees.
A similar law was ratified last month in Massachusetts, and the idea is also under consideration in New York City, New York State, California and Colorado. According to Catherine Rampell, while "the motivation behind such legislation is understandable," the bill "probably won't work – and might backfire… In the absence of more tailored information about how much money to offer potential hires, firms might end up lowballing all applicants from demographics that usually earn less (such as blacks, Hispanics and women)." Rampell also noted: "If policymakers make it harder to figure out upfront whether a candidate fits into a company's budget, the hiring process could get even more protracted," and "coaching workers (especially women) to be better self-advocates, and more effective negotiators" might be a better solution for closing the gender pay gap.
