Massachusetts Equal Pay Law Mandates Income Verification Timing
As you may know, a bill was passed in Massachusetts to establish pay equity.
Lawmakers believe disclosing of salary histories put women at a disadvantage, and they may be offered lower salaries than men in their first jobs even when education and field are taken into consideration. Salary negotiations are also another area where women may be penalized and men get the advantage. A pattern of salary discrimination can continue if the next employer bases a salary on the previous salary a woman was earning. The state of Massachusetts is taking a stand by passing the most vigorous equal pay law in the country. The Senate Bill prohibits employers from asking prospective hires about their salary histories until after they make a job offer that includes compensation, unless the applicants voluntarily disclose the information. This means employers are only allowed to obtain a verification of income after a job offer that includes compensation has been offered rather than at the early stages of the interview process.
Massachusetts’s new law also mandates that employers pay men and women the same, not just when they do the exact same work, but when their work is “comparable”. The state defines comparable work as being “substantially similar” in skill, effort, responsibility, and working conditions — not just based on job titles or descriptions.
The new law also bans salary secrecy, blocking employers from keeping their employees from talking about pay with each other.
The act will take effect in July 2018.
Several other states have passed their own equal pay laws aimed at closing the gender wage gap. This announcement serves as a reminder to comply with all applicable laws regarding the information that can be requested during an income or employment verification. Look for additional information on how this may impact your income verification procedures as the effective date approaches.
To learn more about how Equifax Workforce Solutions can help you manage your income and employment verifications, please contact Pete Krieshok at 314-214-7325 or pete.krieshok@Equifax.com.
Click here to download a PDF version of this bulletin.
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