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Nevada Passed A Salary Inquiry Ban

September 14, 2021

State legislators passed a bill that prohibits employers from asking job applicants about their salary history.

About The Bill

Governor Steve Sisolak signed Nevada’s Senate Bill 293 (SB293) on June 2, 2021. The law is intended to help prevent wage discrimination by prohibiting employers and employment agencies from asking applicants how much they earn or using a person's salary history as a basis to determine what they will offer.

SB293 states that employers shall not, orally or in writing, personally or through an agent:

  • Seek the wage or salary history of an applicant for employment;
  • Rely on the wage or salary history of an applicant to determine:
    • Whether to offer employment to an applicant; or
    • The rate of pay for the applicant; or
  • Refuse to interview, hire, promote or employ an applicant, or discriminate or retaliate against an applicant if the applicant does not provide wage or salary history.

Employers may ask applicants about their salary expectations.

The law also notes that employers must provide the wage or salary range when asked under the following circumstances:

  • To candidates who interviewed for a position.
  • To employees who are up for a promotion or transfer.

Violations

If an individual believes an employer violates this law, they may file a complaint with the Labor Commissioner. After 180 days, they may request to be issued a right to sue notice. If it is granted, the person has 90 days to bring a civil action against the defendant in a civil court.

Pending the results of an investigation, the Commissioner may impose a penalty of not more than $5,000 for each violation. Administrative penalties may also be imposed against employers who are found to violate SB293. This includes, without limitation, investigative costs and attorney’s fees.

Definitions

SB293 provides definitions for a few key terms.

  • Employers are any public or private employer that operates in Nevada, is an agency of the state or a political subdivision of the state.
  • An Employment Agency is any person who regularly works, with or without compensation, to procure employees for an employer.
  • Salary History means the wages or salary paid to an applicant for employment by the current or former employer. The term includes, without limitation, any compensation and benefits received.

Anti-Wage Discrimination Laws

Statistics have shown that not everyone is paid equally for doing the same type of work. When employers determine how much they will pay someone based on how much they currently earn, discriminatory wage practices are likely to continue.

Bills like SB293 are expected to help decrease wage gaps. They ask employers to pay comparable wages to employees who do comparable work. Several states have passed similar laws. We recommend consulting with legal counsel to ensure you are compliant wherever you operate.

Hiring

When hiring people for your organization, background checks are a critical part of the process. These reports can show you if someone has a serious criminal history that might indicate they pose an undue risk to your business, staff or the public. They also help hiring managers determine if someone meets all the requirements for any position.

If you need background checks for employment purposes, please contact us. Our team can help you customize screening packages and find solutions to your hiring challenges. We are available to assist you Monday through Friday from 5am to 6pm PT.

#NevadaLaw #SalaryHistory #WageDiscrimination

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