On July 1, 2018, the state of Vermont began enforcing its own salary inquiry and pay equity legislation, Bill H. 294. With Vermont offering up to $10,000 to individuals who move to the Green Mountain State and work remotely, it’s imperative for employers to understand the new law and its effect on their hiring practices:
The law prohibits employers from asking a prospective employee about or seeking information regarding that individual’s compensation history. In this context, compensation includes base compensation, bonuses, equity and additional benefits.
Employers also may not require that a prospective employee's current or past compensation satisfy minimum or maximum criteria for employment. If an employer happens to discover a prospective employee's salary history by means other than voluntary disclosure, the employer may not determine whether to interview the candidate based on this information.
Employers may consider information gathered via voluntary disclosure and are allowed to confirm compensation history after an offer of employment has been extended with terms of compensation.
Violations are accompanied by penalties which may include injunction, back pay, compensatory damages and civil penalties up to $10,000 per violation.
Vermont joins California, Delaware, Massachusetts, Oregon and Puerto Rico as states or U.S. territories which have enacted pay equity legislation.
In other pay equity law news, Connecticut and Hawaii have each passed statewide legislation that will take effect on January 1, 2019. Charles Aris will have you covered on everything you should know as the turn of the year approaches.
To learn more about salary inquiry and pay equity laws around the United States, visit