On October 12, 2017, Governor Jerry Brown signed AB 168 into law. This new law, which applies to all employers regardless of size, prohibits inquiries into an applicant’s salary history. In addition, employers will now also be required to disclose the relevant pay scale for an open position upon reasonable request. There are a few exceptions to the new law. Employers may consider salary history information that is “disclosable to the public pursuant to federal and state law,” as well as salary history information that is disclosed by an applicant “voluntarily and without prompting.”
The new law goes into effect on January 1, 2018. In the interim, employers should review their hiring practices for compliance and should consider revisions to all aspects of their recruitment process, including but not limited to job postings, applications, and interview questions.