New Pay Scale Disclosure Law May Create Headaches For Connecticut Employers | Carlton Fields

Connecticut has enacted legislation that, effective October 1, 2021, will require employers of all sizes to disclose “salary range” information to employees and applicants. In the case of a job seeker, employers will be required to inform this person, on request, but at the latest when an offer of employment is made, of the salary range provided for the position. The salary range for a position should also be provided to existing employees at their request, when they are hired or when they change positions. When determining the “salary range”, the law states that employers may refer to any applicable salary range, any previously determined salary range, the actual range of employees in comparable positions or the amount budgeted for the position.

The law comes with a mighty hammer – a private cause of action. Thus, employees and candidates can take legal action if the law is violated and may be entitled to compensatory damages, attorney fees and punitive damages.

Connecticut joins a small handful of other jurisdictions with similar laws, including Colorado, which enacted a law that came into effect in early 2021. The perceived burden of Colorado’s law has been so significant that it there are several published accounts of national employers excluding Colorado-based workers. job offers for remote positions to avoid disclosures of salary scales.

Whether Connecticut law applies to remote workers is not specifically addressed in the law, but employers may have to assume at this point that it does.

Employers will need to quickly develop a process to ensure that any request for pay scale information is not ignored. Employers will also need to develop a process to provide this information in relation to any employee being offered a job, hired or changing jobs. Failure to do so risks defending against a costly lawsuit.

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