Pay Equity: An Overview for Executive Search Pay Equity | Page 4

Pay Equity Headlines An overview of Pay Equity The new Pay Equity Legislation on Salary History prohibits employers, or their agents, from seeking current salary or salary history from a prospective external candidate as part of the hiring process. Currently it is only being applied in specific states and cities but it is expected to expand across the country. What is it all about? It is an expansion of law preventing differences in pay based on gender or protected status. The introduction of the legislation will ensure that existing salaries (which are assumed to reflect gender bias) cannot be used to select candidates or to determine the salary for a new position. Why is it being introduced? There is clear evidence of a pay gap between genders and between minority and non-minority groups for the same roles and functions. And when salary history is used to determine compensation this inequality is continued and potentially exagerated. The law seeks to ensure that a salary is determined by the role (not the candidate).​ Where is it happening? A number of states and cities are currently implementing the legislation including; New York City, San Francisco, Delaware, Massachusetts, Oregon, Philadelphia (likely) and Puerto Rico. Many other states are planning to introduce similar legislation including Connecticut, Georgia, Iowa, Idaho, Illinois, Maryland, Maine, Mississippi, Montana, North Carolina, New Jersey, Oregon, Rhode Island, Texas, Virginia, Pennsylvania, Vermont and Washington and it may become federal law (Democrat bill submitted but stalled). www.invenias.com | [email protected]