California Companies

AB 168, Salary History Inquiries, is a relatively new California State Law that you should know about if you are applying for a new job or if you are hiring.

AB 168 – Salary History Inquiries

AB 168 prohibits private and public sector employers from asking applicants about their prior salary, compensation, and benefits. Employers are also prohibited from relying on an applicant’s salary history as a factor in determining whether to offer employment or the amount of salary to offer. However, in determining pay, employers may consider prior salary information the applicant voluntarily discloses. AB 168 also requires employers to provide an applicant the pay scale for a position upon an applicant’s request.

This will be an advantage to job applicants who may have been offered a salary that is lower than what the job they are applying for is worth in the current job market, due to their previous salary history. It also eliminates a question that job applicants have long found perilous and nerve-wracking. No one wants to be paid less than they are worth in the job market or less than what the job they are doing is worth to the company.

This new law may seem like a detriment for companies, but we believe that paying employees what they are worth and what the job they are doing is worth, in the long run, will be an advantage to employers because they will be more likely to retain their employees. Employee turnover is a very costly business.

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