Salary Disclosure Law in Connecticut Takes Effect on October 1st, 2021

The Connecticut Department of Labor has published further guidance for the state’s new salary disclosure law. This guidance provides significantly more information on how the agency interprets the law. But, it is important for employers to keep in mind that this guidance does not carry the weight of law, and courts may have different interpretations.

The new law, “An Act Concerning the Disclosure of Salary Range for a Vacant Position,” will go into effect on October 1st, 2021, and according to the new guidance, it will apply for all employers within the state that use the services of at least one employee for pay. These employees need not be located within the state of Connecticut and apply to remote employees located outside of the state so long as they work for or report to an employer within the state.

For national employers, the guidance states that the Connecticut Department of Labor will not consider the law to cover their employees reporting to a physical worksite outside of Connecticut even if they possess a location within the state.

The Department of Labor provided a definition for “applicant” in the guidance while acknowledging that there is no legal definition for the word. According to the guidance, this includes any individual that applies for a job. However, the guidance states that employers should interpret the word broadly and states that employers are not permitted to create their own definition for the word.

For the core of the law, the guidance provides what employers must provide in the disclosure of wage range. First of all, according to the Department of Labor and in line with the state’s law, discretionary pay will typically not constitute a part of wages. As such, this form of compensation will not need to be disclosed to employees and applicants. However, non-discretionary bonuses and commission plans will need to be included as part of the wage range.

The law addresses the employer’s duties as far as the breadth of disclosures as well. According to the guidance, an applicant may only request the wage range for the position to which they are applying. The employer need not include the wage they pay to other employees in this disclosure.

 Applicants or employees may file civil actions within two years of the date of occurrence of the alleged violations. Remedies may include compensatory and punitive damages, attorney’s fees, and other relief the court sees fit. Individuals may also file a complaint with the labor commissioner, which may assess civil penalties but cannot seek damages for victims even should a violation be found.

Connecticut Releases Guidance for Salary Disclosure Law

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