SB 540

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 more than $200,000.

4. If the defendant employs more than 500 employees, no more than $300,000.

The bill requires DWD to annually revise these amounts based upon the change in the consumer price index in the previous year, if any positive change has occurred.

Under current fair employment law, an individual who alleges discrimination in employment may file a complaint with DWD seeking action that will effectuate the purpose of the fair employment law, including reinstating the employee, providing back pay, and paying costs and attorney fees.