Written By ESR News Blog Editor Thomas Ahearn
A law passed in Nevada that will take effect on October 1, 2021 – Senate Bill No. 293 (SB 293) – will restrict employers from inquiring into an applicant’s salary history and will also require employers to provide wage or salary range or rate information to new hire applicants and to employees who apply for promotions or transfers.
Approved by Nevada Governor Steve Sisolak on June 2, 2021, SB 293 defines “salary history” as “salary paid to an applicant for employment by the current or former employer of the applicant. The term includes, without limitation, any compensation and benefits received by the applicant from his or her current or former employer.”
Under SB 293, an employer shall not seek the salary history of an applicant for employment, rely on salary history to determine whether to offer employment to an applicant or rate of pay for the applicant, or refuse to interview, hire, promote or employ, or to discriminate or retaliate against, an applicant who does not provide salary history.
In addition, SB 293 does not provide an exception for relying on salary history information voluntarily disclosed by an applicant, unlike many salary history bans, and does not allow employers to consider or rely on these voluntary disclosures to determine whether to offer an applicant employment or make an offer of compensation.
SB 293 also requires employers to provide the “wage or salary range” or “rate” for a job to applicants who have had an interview and to current employees if they applied for or were offered a promotion or transfer, had an interview for the promotion or transfer, and requested the wage or salary range for the promotion or transfer.
As of August 2021, Alabama, California, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Vermont, Virginia, Washington, and Wisconsin have passed statewide salary history bans. HRDive keeps a running list of these bans.
“When an employer has a background screening firm perform past employment verifications, it is critical that firm knows which cities, counties, and states prohibit salary history questions, or that employer could be fined,” says Attorney Lester Rosen, founder and chief executive officer (CEO) of Employment Screening Resources® (ESR).
Employment Screening Resources® (ESR) – a leading global background check provider that was ranked the #1 screening firm by HRO Today in 2020 – offers flexible employment verifications that provide the salary history of applicants only if permitted by state and local laws. To learn more about ESR, visit www.esrcheck.com.
NOTE: Employment Screening Resources® (ESR) does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.
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