In October 2017, Governor Jerry Brown signed A.B. 168, which added a section to California's labor code banning employers from asking about past salary. The new law, codified in section 432.5 of the Labor Code, took effect on January 1, 2018.
The goal of this law is to help address the wage gap, or the pay disparity between men and women in substantially similar jobs. California has joined a growing number of states in banning companies from asking about past salary on the theory that this perpetuates wage discrimination because women and minorities have historically been underpaid. When salary negotiations are based on past wages that were lower than the wages should have been because of systemic discrimination, low wages will follow a worker from job to job.
The law did more than just prevent employers from asking about past salary. The law:
Our professionals provide guidance with all aspects of the hiring process, including presenting qualified candidates whose compensation expectation match the pay range. It is important to remember you can discuss compensation with candidates as long as they volunteer this information. It is also ok to discuss salary expectations. Celeritas represents companies and candidates who understand the importance of matching compensation expectation with the open position from the beginning.