SB 447 — Wage or salary history inquiries; prohibited, civil penalty.

SESSION INTRODUCEDENGROSSED 22104096D I SENATE BILL NO.

447 OfferedSenate JanuaryAmendments 12,in 2022[ N] - February 9, 2022 Prefiled January 11, 2022 T A BnumberedBILL to amend the Code of Virginia by adding in Article 1 of Chapter 3 of Title 40.1 a section numbered 40.1-28.7:10, relating to prohibition on employer seeking wage or salary history ofRof prospective employees;

cause of action;action––––––––––nalty.

civilPatron penalty.Prior to Engrossment––Senator Boysko –––––––––– E Referred to Committee on Commerce and Labor N –––––––––– Be it enacted by the General Assembly of Virginia:

––––––––––G O1. Patron––Boysko D –––––––––– Referred to Committee on Commerce and Labor U –––––––––– C Be it enacted by the General Assembly of Virginia:

sectionThat numberedthe 40.1-28.7:10Code asof follows:yVirginia is amended by adding in Article 1 of Chapter 3 of Title 40.1 a ER §section 40.1-28.7:10.numbered 40.1-28.7:10 as follows:

§ 40.1-28.7:10.

A."Wage or salary history" means the wage or salary paid to the prospective employee by the S prospective employee's current employer or previous employer.

AsS used"Wage or salary range" means the wage or salary range that the employer anticipates relying on in thissetting section:wages for the position and may include reference to any applicable pay scale, any previously determined range of wages or salaries for the position, the actual range of wages or salaries fDr those currently holding comparable positions, or the budgeted amount for the position, as applicable.

"WageB. or salary history" means the wage or salary paid to the prospective employee by the prospective employee's current employer or previous employer.

"WageNo or salary range" means the wage or salary range that the employer anticipatesshall: relying on in setting wages for the position and may include reference to any applicable pay scale, any previously determined range of wages or salaries for the position, the actual range of wages or salaries for those curB.

No employer shall:able positions, or the budgeted amount for the position, as applicable.

B 2.

7in 3.determining the wages or salary the prospective employee is to be paid upon hire;ospective employee 4.

ExceptRefuse asto providedinterview, inhire, subsectionemploy, D,or relypromote ona theprospective wageemployee or salaryotherwise historyretaliaSe ofagainst a prospective employee infor determiningnot theproviding wageswage or salary thehistory; prospective employee is to be paid upon hire;

4.B 5.

RefuseFail toor interview,refuse hire,to employ,provide or promote a prospective employee the wage or otherwisesalary retaliaterange againstfor athe position for which the prospective employee foris notapplying providingprior wageto ordiscussing salarycompensation history;and at any time upoE the prospective employee's request.

which the prospective employee is applying prior to discussing compensation and at any time upon the prospective employee's request.

The provisions of subsection B shall not be construed to prevent a prospective employee from 34 voluntarily disclosing wage or salary history, including for the purpose of negotiating wages or salary 35 after an initial offer of employment with an offer of compensation.

36from D.the employer then (i) the employer [ shall may ] rely on wage or salary history to support a wage 38 or salary higher than the employer's initial offer of compensation only to the extent that the higher wage 39 or salary does not create an unlawful pay differential in violation of § 40.1-28.6 or federal law and (ii) the employer may seek to confirm the wage or salary history of the prospective employee to support a wage or salary higher than the wage or salary offered by the employer.

If wage or salary history is voluntarily provided by a prospective employee without prompting 37 from the employer then (i) the employer shall rely on wage or salary history to support a wage or 38 salary higher than the employer's initial offer of compensation only to the extent that the higher wage or employer may seek to confirm the wage or salary history of the prospective employee to support a wagei) the or salary higher than the wage or salary offered by the employer.

An aggrieved prospective employee or employee may bring an action, individually, jointly, with other aggrieved prospective employees or employees, or on behalf of similarly situated prospective employees or employees as a collective action against the employer in aaf purposecourt of thiscompetent section,jurisdiction awithin prohibitedtwo actionyears occursof when (i)the a prohibited wageaction oroccurred. salary decision or practice is adopted;

For the purpose of this section, a prohibited action occurs when (i) a prohibited wage or salary decision or practice is adopted;

Any employer that violates the provisions of this section is subject to a civil penalty not to exceed (i) $1,000 for a first violation, (ii) $2,000 for a second violation, and (iii) $4,000 for a third or subsequentprovision violation.of this section by certified mail.

TheSuch Commissionernotice shall notifycontain anya employerdescription thatof hethe allegesalleged has violated any violation.

Within 15 days of receipt of notice of the alleged violation, the employer may request an SB447SB447E 2 of 2 informal conference regarding such violation with the Commissioner.

[ 2.

That the provisions of this act shall become effective on July 1, 2023.