Late last year, the Pay Equity for All Act of 2016 (H.R.6030) was introduced in the House of Representatives. Even though this bill hasn’t yet been passed, it is essential that all employers are familiar with the potential changes that could happen in the workforce.
Here’s a quick overview to help you understand how H.R. 6030 could affect your hiring practices:
What is H.R. 6030?
This bill by Elanor Holmes Norton, D-D.C. was introduced as a way to create equal opportunities for women, men, and minorities who are completing the same type of work. The law will prohibit employers from asking employees about their salary history. If the bill passes and an employer asks this question during the hiring process, then they could be fined up to $10,000.
The goal is to close the gender pay gap and also give minorities the opportunity to earn the same salary as other people with comparable job duties. Most employers have the intention not to discriminate based on gender, ethnicity, or race. But, it has been found that asking about salary information before offering a position could reinforce the wage gap.
How Will This Bill Affect Your Hiring?
Instead of basing the offer on the employee’s previous pay, employers should be considering the job duties to determine salary. Other factors that should influence pay include previous experience, the current market, and education requirements. If you don’t already have measures in place to ensure fair wages for all, then right now might be a great opportunity for you to assess your situation.
Most companies will find that their interviewing and hiring process will be unchanged because they aren’t currently asking job candidates about salary information. The employers who are asking this question will simply need to remove the question from their interview process and then proceed as usual. These requirements will not prohibit employers from asking and verifying previous pay history altogether. Instead, the employer will need to wait until after the job offer is finalized before requesting this information.
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