Disclosure of Wage Ranges Required in Connecticut, and Broader Gender Based Pay Discrimination Standards

Effective October 1, 2021, Connecticut employers will be required to inform applicants of the wage range of the job applied for upon the applicant’s request, or prior to, or at the time the applicant is made an offer of compensation, whichever is earlier. In addition, employers must provide similar information to current employees regarding the employee’s position upon hire, a change in position within the company, or the employee’s first request for the information. A copy of the law can be found here.

“Wage” is defined as compensation for labor or services rendered by an employee, whether the amount is determined on a time, task, piece, commission, or other basis. “Wage range” means the range of wages an employer anticipates relying on when setting wages for a position, and may include reference to any applicable pay scale, previously determined range of wages for the position, actual range of wages for those employees currently holding comparable positions, or the employer’s budgeted amount for the position.

The current law banning employers from prohibiting employees from disclosing their wages, or inquiring about the wages of another employee, remains in place. Also, the current law that prevents an employer from inquiring about a prospective employee’s wage and salary history, or the value of the applicant’s compensation structure, continues in effect.    

Job applicants and employees may bring a civil action within 2 years of any alleged violation. Damages include compensatory and punitive damages, along with attorney’s fees.           

Aside from the disclosure of wage ranges, the new law widens the test for gender based pay discrimination by substituting the standard of “equal pay for equal work,” with “equal pay for comparable work.”  

Under the new rule, if an employee can show gender based unequal pay for comparable work, when considering the skill, effort, responsibility, and working conditions of the two jobs, the burden shifts to the employer who must show the difference is based on a seniority system, merit system, a system that measures earnings by quantity or quality of production, or a differential system based on a bona fide factor other than sex, including but not limited to education, training, credentials, skill, geographic location, or experience. Any factor relied on by the employer cannot be based on or derived from a sex-based differential in compensation, and must be job related and consistent with business necessity. The employer’s defense shall not prevail where the employee demonstrates that an alternative employment practice exists that would serve the same business purpose, without producing the pay differential, and that the employer refused to adopt the alternative practice.

Employees may file a complaint with the labor commissioner, and barring investigation, can then file a court action.