Prohibits employers or prospective employers from inquiring into an employee or prospective employee's salary history
Impact
The implementation of SB934 will directly influence how employers assess potential candidates and their compensation strategies. Employers will no longer be able to base hiring decisions or salary offers on prior salaries, which could lead to a more equitable workplace environment. However, the bill does provide exceptions for internal transfers, voluntary disclosures by applicants, and circumstances that comply with collective bargaining agreements, thus maintaining some flexibility for employers in certain situations.
Summary
Senate Bill 934 seeks to amend Missouri's employment laws by prohibiting employers from inquiring about an applicant's salary history during the hiring process. The intention behind the bill is to promote fair hiring practices and diminish pay discrimination based on previous wages. Proponents of the bill assert that by eliminating salary history inquiries, applicants will have better opportunities for fair compensation based on their qualifications and current market rates rather than their past salaries, which may be influenced by various factors such as discrimination or economic disparities.
Contention
Though the bill is widely supported by advocates of workplace equity and equal pay, there are concerns among some business groups regarding its potential impact on hiring practices. Critics argue that this could complicate the hiring process and make it difficult for employers to gauge whether candidates are within a reasonable salary range for their roles. Moreover, businesses may worry about the effects on their compensation planning and the historical context from which current salary levels are derived.
Notable_points
SB934 emphasizes the importance of fair compensation and reducing systemic pay disparities. The bill encourages dialogue about salary expectations without the baggage of past salary information, which can often perpetuate cycles of inequity. The provision that allows discussion around compensation expectations while prohibiting inquiries into salary history is seen as a balanced approach to fostering fairness in hiring while still allowing employers some latitude in negotiations.