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June 8, 2021

Newly passed wage disclosure law creates more transparency around employee pay

Photo | CT Mirror The state Capitol.

Employers in Connecticut will now have to disclose the expected salary range for open positions upon an applicant’s request.

Gov. Ned Lamont on Monday signed into law HB 6380, legislation aimed at increasing transparency around pay not only for applicants but also current employees. The law prevents businesses from prohibiting the voluntary disclosure of salaries among workers and bans the practice of having staff members sign documents or waivers denying them the right to speak about their pay levels.

Most notably, the act would mandate the disclosure of an open position’s expected compensation range to applicants either upon the applicant’s request or at the time an offer of employment is made.

Employees would 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.

House Democrats have said the law will increase transparency and fairness around wages, especially for women, who on average earn less than men, and particularly for mothers, who are often left shouldering child care responsibilities. The issue has received renewed attention in light of the COVID-19 pandemic, which has caused approximately 3 million American women to drop out of the labor force.

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