Like several other US States, Connecticut has taken significant steps towards promoting pay transparency in the workplace.

In 2021, the state enacted a law known as Public Act 21-30, which aims to ensure fairness and equity in compensation practices.

This law includes numerous key provisions that impact both employers and employees.

Connecticut's pay transparency law consists of four main components:

1. Equal Pay for Comparable Work
2. Wage Range Transparency
3. Salary History Ban
4. Freedom to Discuss Wages

01. Equal Pay for Comparable Work

The law mandates that employees performing similar duties under similar conditions must receive equal pay.

This goes beyond the previous requirement of equal pay for “equal work.” Employers must justify any pay differences based on legitimate factors such as seniority, merit, or other bona fide reasons like education or experience.

This provision aims to close gender and racial wage gaps by ensuring that all employees are compensated fairly for their contributions.

02. Wage Range Transparency

Employers in Connecticut are required to disclose the salary range for a position to both applicants and current employees. This disclosure must occur at specific times:

• When an applicant requests it.
• Before or at the time an offer is made.
• When an employee is hired, promoted, or upon their request.

The term “wage range” refers to the range of wages that an employer expects to rely on when setting salaries for a position. This transparency helps applicants make informed decisions and encourages fair competition among employers.

03. Salary History Ban

Under this law, employers cannot seek or use an applicant’s salary history to determine their pay.

They cannot require applicants to disclose their previous wages as a condition of employment.

This ban prevents discrimination based on past salaries, which can perpetuate wage gaps. Employers also cannot retaliate against applicants who refuse to disclose their salary history.

04. Freedom to Discuss Wages

The law protects employees' rights to discuss their wages without fear of retaliation from their employers.

Employers are prohibited from penalizing employees for inquiring about or sharing wage information with colleagues.

Enforcement and Penalties

Civil Actions‍

Employees or job applicants can bring a civil lawsuit against employers for violations of the pay transparency law. They have two years from the date of the violation to file this lawsuit. Successful claimants may be entitled to:

1. Compensatory damages: These are intended to compensate for any losses suffered due to the violation.
2. Punitive damages: These may be awarded in addition to compensatory damages as a way to punish the employer for particularly egregious behavior.
3. Attorney's fees and costs: Claimants can recover legal costs incurred while pursuing their case.

Fines‍

Employers can incur fines for non-compliance with specific provisions of the law:

1. An initial violation can lead to a fine of up to $300 per affected employee or applicant.
2. Subsequent violations within three years can increase the fine to $600 per violation.
3. Overall, penalties can range from $100 to $10,000 depending on the nature and frequency of violations.

Record keeping Requirements‍

Employers must maintain records demonstrating compliance with the pay transparency law for at least three years after a job is filled. If a position is not filled, records must be kept for three years after the job posting. Failure to maintain these records could also result in penalties.‍

Initial Compliance Letters‍

For first-time violations, employers may receive a letter compelling them to comply with the law before facing fines. This serves as a warning and an opportunity to correct their practices without immediate financial penalties.

Proposed Amendments

Recently, Connecticut has proposed additional legislation (H.B. No. 5243) aimed at strengthening its pay transparency efforts.

This proposed bill would require employers to disclose salary ranges in all job postings, aligning Connecticut with other states like California and New York that have similar requirements.

The goal is to enhance transparency further and ensure that jobseekers have access to critical compensation information before applying.

Connecticut Steers the Ship!

Connecticut's pay transparency law represents a significant advancement in labor rights and workplace equity.

By mandating equal pay for comparable work, requiring wage range disclosures, banning salary history inquiries, and protecting employees' rights to discuss wages, the state is fostering a more transparent and fair employment landscape.

As recommended amendments seek to expand these protections further, Connecticut stands as a model for other states aiming to enhance pay equity and transparency in the workplace. We're excited to see how these laws develop.