Creates new provisions governing employer hiring practices as it relates to inquiries of salary history of employees and prospective employees
Impact
If enacted, SB852 will modify Chapter 285 of the Revised Statutes of Missouri by adding a new section that specifically disallows employers from seeking salary history information. While it does allow applicants to voluntarily disclose their salary history if they choose to do so, the onus is on the employers to avoid seeking this information during the hiring process. This could lead to significant shifts in how companies conduct hiring, training them to focus more rigorously on the candidates' professional merits and skills rather than their financial history.
Summary
Senate Bill 852 is a proposed legislation aimed at regulating hiring practices in the state of Missouri. The bill intends to prevent employers from inquiring about the salary history of employees and prospective employees. By prohibiting inquiries into past salary information, the bill seeks to address wage disparities and promote fairness in compensation. This legislative change is seen as a step towards ensuring that compensation is based on the individual's qualifications and experience rather than their previous earnings, which can perpetuate salary inequality.
Contention
The opposition to SB852 primarily revolves around concerns from businesses regarding the limitations it places on employers' ability to understand candidate compensation expectations and past remuneration. Some critics argue that salary history inquiries serve as a tool for employers to gauge the financial expectations of applicants and to maintain salary structures within their organizations. Proponents of the bill, however, counter that such practices do little to advance equity and often contribute to entrenched wage gaps, particularly for women and minorities. As such, the debate over SB852 brings to light broader discussions on systemic wage inequalities in the labor market.