AB 538

This bill prohibits certain employer conduct related to the compensation

information of current and prospective employees.

The bill prohibits an employer from doing any of the following with respect to

a prospective employee:

1. Soliciting information about the prospective employee's current or prior

compensation before making an offer of employment. The bill also repeals a

provision that gives employers the right to solicit such information.

2. Relying on information regarding the prospective employee's current or prior

compensation when determining whether to make an offer of employment or setting

compensation when making an offer of employment to that prospective employee.

3. Requiring that the prospective employee's current or prior compensation

meet certain criteria in order for the prospective employee to be considered for

employment.

4. Refusing to hire the prospective employee for exercising his or her rights

relating to compensation information.

The bill also prohibits an employer from discharging or discriminating against

a current employee for disclosing the details of the employee's compensation,

discussing the compensation of other employees, asking other employees for details

regarding their compensation, or taking certain actions to enforce an employee's

rights under the bill.

The bill requires employers to post notices, where notices to employees are

customarily posted and on any electronic job posting, regarding employees' and

prospective employees' rights under the bill and provides a penalty for an employer's

failure to do so.

The bill allows the Department of Workforce Development or an individual who

is alleged or was found to have been discriminated against on the basis of

compensation information to bring an action in circuit court in addition to or in lieu

of filing an administrative complaint.

Under the bill, if the circuit court finds that a defendant has committed an act

of discrimination, the circuit court may award back pay and any other relief that

could have been awarded in an administrative proceeding. In addition, the circuit

court must order the defendant to pay to the individual discriminated against

compensatory and punitive damages that the circuit court finds appropriate, except

that the total amount of damages awarded for future economic losses and for pain

and suffering, emotional distress, mental anguish, loss of enjoyment of life, and other

noneconomic losses and punitive damages is subject to the following limitations:

1. If the defendant employs 100 or fewer employees, no more than $50,000.

2. If the defendant employs more than 100 but fewer than 201 employees, no

more than $100,000.

3. If the defendant employs more than 200 but fewer than 501 employees, no