Vermont Salary History Ban

June 7th, 2018 | Sterling

On May 11th, 2018 Vermont Governor Phil Scott signed legislation which will prohibit employers from requiring an applicant to disclose his or her salary and from seeking an applicant’s salary history without his or her authorization.  The new law will take effect on July 1st, 2018  Please see below for a summary of this new law.

The law will make it an unlawful practice for an employer to do the following:

• Inquire or seek information regarding a prospective employee’s current or past compensation from either the prospective employee or a current or former employer of the prospective employee
• Require that a prospective employee’s current or past compensation satisfy a minimum or maximum criteria
• Determine whether to interview a prospective employee based on the prospective employee’s current or past compensation

If a prospective employee voluntarily discloses information about his or her current or past compensation, an employer may, after making a an offer of employment with the compensation information to the prospective employee, seek to confirm or request the individuals compensation information.  Additionally, employers are allowed to inquire about an individual’s salary expectations or requirements and are permitted to provide information about the compensation being offered in relation to a position.

The full text of the law can be found here

The information contained herein is for informational purposes only. Clients are encouraged to consult with their legal counsel on the impact of this new law. Sterling is not a law firm, and none of the information contained in this notice is intended as legal advice.

This and other important legislative updates can be found on the Sterling website, https://www.sterlingcheck.com/resources/compliance-updates/

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