Vermont has become the latest jurisdiction to enact a law that will prohibit employers from inquiring about, seeking, or requiring salary history information from prospective employees.

The law will take effect on July 1, 2018.

Under the law, employers and their agents will be prohibited from:

• inquiring about or seeking information regarding a prospective employee’s current or past compensation from either the prospective employee or his or her current or former employer;
• requiring that a prospective employee’s current or past compensation satisfy minimum or maximum criteria; and
• determining whether to interview a prospective employee based on his or her current or past compensation.

If, however, a prospective employee voluntarily discloses information about his or her current or past compensation, an employer may, after making an offer of employment with compensation to the prospective employee, seek to confirm (or request that the prospective employee confirm) the compensation information provided.

The law further provides that employers may inquire about a prospective employee’s salary expectations or requirements and/or provide information to the candidate about the compensation and benefits offered in relation to the position in question.

For purposes of the law, “compensation” is defined broadly to include “wages, salary, bonuses, benefits, fringe benefits, and equity-based compensation.”

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We will continue to report on new developments with regard to this law as they arise.