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What you need to know about the new San Francisco pay equity law

 

San Francisco became the first city in California to enact its own pay equity legislation with the start of the San Francisco Parity in Pay Ordinance on July 1, 2018. Whether you’re currently in process for a new opportunity or actively recruiting A-level talent, here’s what you should know about this law now in effect:

  • The law prohibits employers from considering salary history when determining whether to hire an applicant or when deciding the compensation of a selected applicant
  • The law also prohibits asking the applicant about pay history, unless that information is voluntarily disclosed
  • Pay history does not include revenue, sales or other production reports, which an employer may directly inquire about
  • The law also prevents employers from disclosing the salary history of a current or former employee to that person’s prospective employer without the employee’s written authorization

The San Francisco Office of Labor Standards Enforcement (OLSE) serves as the authority to enforce the ordinance. Between July 1, 2018 and June 30, 2019, OLSE will only impose warnings for violations. Beginning July 1, 2019, violators will receive administrative penalties ranging from $100 to $500 per violation.

Stay tuned for more pay equity news from Charles Aris Inc. To learn more, visit CharlesAris.com/pay-equity-laws.

The state of Massachusetts  introduced a pay equity law that also went into effect July 1, 2018. Learn more about the Massachusetts Equal Pay Act.