On June 7, 2021, Connecticut Governor Ned Lamont amended the state’s salary history inquiry and pay equity statutes. This article will discuss the newly-required wage range disclosures and the modifications to Connecticut’s current standard for pay equity claims.
Wage Range Disclosures
Similar to laws in California, Maryland and Washington, the amendment prohibits Connecticut employers from failing or refusing to provide job applicants with the wage range of a vacant position for which they are applying. Employers must disclose a wage range either upon the applicant’s request or prior to the time at which the applicant is given a compensation offer. Additionally, it prohibits the same failure or refusal upon the official hiring of an employee, the change in a current employee’s position within the organization or upon request by an employee.
Wage range has been defined in the amendment as a range that the employer anticipates they will rely on when setting wages for a particular position. The range may include references to a pay scale, wage ranges previously determined for the specific position, the actual wage range of employees that are currently holding the position, or the amount budgeted by the employer for this vacancy. Employees have two years to bring a private action if these new requirements are violated.
Pay Equity Claims
Under the current pay equity statute, employers are prohibited from paying employees of opposite sexes at different rates if the employees perform “equal work.” The amendment has modified this definition from “equal work” to “comparable work.” A review of the employee’s skill, effort, and responsibility will determine whether the work is “comparable.” Employers must be able to show that any pay disparities between sexes is based on a factor other than sex, such as, experience, education, or location.
This amendment is set to come into effect on October 1, 2021. In anticipation of these new requirements, employers should consider a wage range disclosure policy and take time to review their current wage practices in order to ensure compliance.