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Virginia Governor Vetoes Salary History Ban Bill

08 May

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Update Applicable to:Effective date
All employers in VirginiaSee details below


What happened?

On March 14, 2024, Virginia Governor Glenn Youngkin (R) vetoed identical bills Senate Bill 370 and House Bill 990, passed by the Virginia legislature barring employers from asking about a job applicant’s salary history and requiring pay information to be included in job listings.


What are the details?

The vetoed legislation would have prohibited employers from:

(i) asking job applicants for their wage or salary history

(ii) relying on that history in determining the applicant’s starting wage or salary

(iii) considering wage or salary history when making a hiring determination; and

(iv) refusing to interview, hire, employ, promote, or otherwise retaliate against an applicant for not providing wage or salary history.

(v) employers must disclose the wage, salary, or wage or salary range for public and internal job postings.

The legislation would have created a cause of action for aggrieved applicants and employees and provide for statutory damages between $1,000 and $10,000 or actual damages, whichever is greater, attorney’s fees and costs, and other appropriate relief.

Governor Youngkin, while recognizing wage gaps, criticized the proposed law as government overreach, arguing that it lacks full information for hiring, neglects business needs, and risks legal issues for small businesses. He viewed it as a uniform solution not considering Virginia’s business diversity, with potentially significant negative impacts.

The Virginia Assembly will meet again on April 17, 2024, to review the Governor’s bill recommendations and vetoes, and although a 2/3 vote is needed to override a veto, bipartisan support is necessary to override it.


Business Considerations

  • Although vetoed, employers should consider implementing a pay transparency policy voluntarily.
  • Employers should audit your payroll and fix any wage disparities you may encounter.


Source References


Resources

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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