e-Alert: Connecticut Passes Law Requiring Disclosure of Wage Ranges to Applicants and Employees

Background

Connecticut becomes the first state to pass a new law regarding disclosure of salary ranges to candidates. Effective, October 1, 2021, employers operating within the State of Connecticut will need to disclose the salary range of an open position to all applicants and employees interested in the position.

Summary

Like the Massachusetts Pay Equity Act, the new law also expands Connecticut’s prohibition of gender-based pay discrimination to require equal pay for “comparable,” as opposed to “equal,” work. “An Act Concerning the Disclosure of Salary Ranges” is an expansion of Governor Ned Lamont’s efforts to close any existing wage gaps for comparable work across the state. We have summarized the key points of this new law below:

• Employers are prohibited from failing or refusing to provide an applicant for employment the wage range for a position for which the applicant is applying, upon the earliest of (a) the applicant’s request, or (b) prior to or at the time the applicant is made an offer of compensation.
• Employers are prohibited from failing or refusing to provide an employee the wage range for the employee’s position upon (a) the hiring of the employee, (b) a change in the employee’s position with the employer, or (c) the employee’s first request for a wage range.
• The law defines “wage range” as: “The ranges of wages an employer anticipates relying on when setting wages for a position.” The definition also provides that the “wage range” may include reference to any applicable pay scale, previously determined range of wages for the position, actual range of wages for those employees currently holding comparable positions, or the employer’s budgeted amount for the position.
• Employees have two years from the date of infraction to file a violation of The Act. This expands the existing pay equity laws to include applicants for future employment.
• The act now expands the current law to state that an employer cannot pay an employee less than what the employer is paying an employee of the opposite sex for comparable work. The test for whether work is “comparable” will be determined “when viewed as a composite of skill, effort, and responsibility and performed under similar working conditions.”

Employers Next Steps

• Employers should consider adopting policies and practices that respond to the new law by its effective date of October 1, 2021, including the development of bona fide salary ranges based on objective criteria.
• Employers should conduct internal assessments to determine “comparable worth” by evaluating combined skills, efforts, and responsibilities under the same working conditions.
• Please email us if:
  • You are a Full-Service or Virtual HR client and would like our assistance with updating your policies, or
  • You are interested in our compensation benchmarking and pay equity assessment services, or
  • You have further questions regarding this e-Alert.

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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.