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October 1, 2021

Wage range disclosure law comes into effect

Photo | Pixabay
By Zachary Vasile

Starting today, employers with operations in Connecticut will have to provide job applicants with an approximation of an open position’s expected salary, either before or as an offer is made or upon the applicant’s request.

Under a new state law, businesses will have to disclose a “wage range” to prospective employees, as well as to current workers when they change roles within a company. Employees also have the right to inquire about their position’s wage range annually.

The law also changes the standard used to determine if an employer is committing gender-based wage discrimination, requiring employees to provide equal pay for comparable work, not just equal work. 

It does include protections for some pay differences, however, if employers can demonstrate they are basing compensation levels on seniority, merit, productivity or “a differential system based upon a bona fide factor other than sex,” such as education, training or experience.

The act was signed into law by Gov. Ned Lamont in June after clearing the state House and Senate, where Democrats argued it would increase transparency and fairness around wages, especially for women, who on average earn less than men. 

According to guidance released by the state Department of Labor in September, the law’s provisions apply to all workers in Connecticut, as well as to workers outside of Connecticut who are employed by an in-state business. It also applies to the Connecticut-based subsidiaries of out-of-state employers.

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