Employers May Not Consider Salary History When Determining What Salary To Offer
On June 1, 2017, Oregon Governor Kate Brown signed the Oregon Equal Pay Act of 2017 (HB 2005). It prohibits employers from using an applicant's previous salary history to make decisions about what type of compensation to offer that person. The bill, which does not go into effect until 2019, seeks to address salary disparities for people who are part of any protected class. It will prohibit employers from:
- Asking applicants about their salary history including benefits and other forms of compensation.
- Asking about an applicant's current or previous employers about the person's salary history unless the individual provides written authorization to do so.
- Making decisions about compensation based on a person's salary history if it is known.
- Discriminating against employees in the payment of wages or other compensation for doing comparable work
Employers may offer differing levels of compensation for comparable work if the compensation is based on:
- A merit system
- Other relevant factors
The bill defines an employer as "any person employing one or more employees, including the State of Oregon or any political subdivision thereof or any county, city, district, authority, public corporation or entity and any of their instrumentalities organized and existing under law or charter."