Wisconsin Senate Bill SB577

Wisconsin 2023-2024 Regular Session

• Introduced: 10/30/23
• Refer: 10/30/23
• Failed: 4/15/24

Caption

Prohibiting an employer from relying on information about a prospective employee's compensation when making employment decisions or inquiring about a prospective employee's compensation and from restricting an employee's right to disclose compensation information, allowing actions in circuit court, and providing a penalty. (FE)

Impact

If passed, SB577 would amend existing state laws concerning employment discrimination related to compensation information. It seeks to create a more equitable hiring process where prospects' previous salaries do not influence their employment opportunities and compensation levels. This could significantly impact wage structures across various industries located within the state. Supporters argue that the bill would empower workers to negotiate fairer salaries without the burden of their past compensation affecting their current opportunities.

Summary

Senate Bill 577 aims to enhance employee rights regarding compensation transparency by prohibiting employers from soliciting or relying on compensation information of prospective employees before making job offers. Specifically, the bill outlaws any conduct by employers that could discriminate based on compensation history during the hiring process. This includes soliciting current or prior salary details and discriminating against employees who discuss or disclose their compensation. The intent is to promote pay equity and diminish the impact of wage disparities perpetuated by previous employment compensation.

Contention

Notably, SB577 faces opposition from some employer organizations who argue that the bill may hinder employers' ability to assess candidates effectively and could lead to complications in recruitment processes. There are concerns that the bill's restrictions could create compliance challenges and increase litigation risks associated with employment practices. Advocates for the bill counter that the need for equitable pay is of utmost importance, and the bill represents an essential step toward rectifying longstanding disparities in compensation, particularly for marginalized groups.