Employers are not allowed to ask applicants about their past pay rates, whether in person, on forms, or through agents in California. This prevents past pay from influencing hiring decisions or pay rate offers. However, if an applicant chooses to share their pay history without being asked, the employer can consider it when determining pay. An employer can also ask an applicant what their pay expectations are for the position they are applying for.
Employers must provide job applicants with the pay scale for a position if requested. Current employees can also request the pay scale for their role. This is huge because it can provide pay transparency to employees who may be victims of unlawful pay discrimination based on protected characteristics like, sex, gender, and race. Companies with 15 or more employees must include pay scales in job postings, and if a third party is hired to post the job, the pay scale must still be included.
To ensure fairness, employers must keep records of employees’ job titles and pay history for the duration of employment and three years after. These records help detect and discourage discriminatory pay practices and wage discrepancies.
(See Link(s): Labor Code section 432.3)