Vermont Bars Inquiries into Job Applicants’ Salary and Benefit History
06/06/18
Author: ADP Admin/Wednesday, June 6, 2018/Categories: State Compliance Update, Vermont
Beginning July 1, 2018, employers in Vermont will be prohibited from requiring a prospective employee to disclose salary and benefit history under legislation (H.B. 294) signed by Governor Phil Scott on May 11, 2018. The new law also bars employers from seeking an applicant’s salary history without applicant authorization.
Prohibited Inquiries
Under the new law (21 V.S.A. §495m), employers are prohibited from:
- Inquiring or seeking information about a prospective employee’s current or past compensation from the prospective employee or the current or former employer;
- Requiring that a prospective employee’s current or past compensation satisfy minimum or maximum criteria; or
- Determining whether to interview a prospective employee based on current or past compensation.
However, if a prospective employee voluntarily discloses information about his or her current or past compensation, an employer—after making an offer of employment—may seek to confirm or request that the prospective employee confirms this information.
Permitted Inquiries
Employers may inquire about a prospective employee’s salary expectations or requirements or provide information about the wages, benefits, compensation, or salary offered with the position. “Compensation” includes wages, salary, bonuses, benefits, fringe benefits, and equity-based compensation.
Coverage: Employers with employees in Vermont
Effective: July 1, 2018
Action Required: Prepare for the effective date by reviewing and, if necessary, modifying your employment applications, interview protocols, and verification policies to exclude inquiries relating to a job applicant’s salary history. Please note that the most recent version of our model employment application (available on FormSource/Forms Library) does not include questions related to salary history.
As always, please be sure to contact your HR Business Partner if you have any questions.
*Produced in cooperation with Jackson Lewis P.C.
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