An Act to amend the Code of Virginia by adding in Article 1 of Chapter 3 of Title 40.1 a section numbered 40.1-28.7:12, relating to prohibiting employer seeking wage or salary history of prospective employees; wage or salary range transparency; cause of action; civil penalty.
HB636 adds a new section to Virginia’s labor code prohibiting employers from asking prospective employees about their wage or salary history and from relying on that history when making hiring or pay decisions, with limited exceptions. The bill also bars retaliation against applicants or employees who decline to provide salary history or who request a wage or salary range, and it requires employers to disclose the wage, salary, or salary range in public and internal postings for jobs, promotions, transfers, and other employment opportunities.
The bill defines “wage or salary history” and “wage or salary range,” and requires that any posted range be set in good faith based on applicable pay scales, prior ranges, current equivalent positions, or the budgeted amount for the position. It preserves an applicant’s ability to voluntarily disclose salary history, including during negotiations after an initial offer, and allows an employer to confirm voluntarily provided history in limited circumstances consistent with state and federal wage laws.
HB636 creates a new enforceable wage-transparency and salary-history ban in Title 40.1 of the Code of Virginia. It gives the Attorney General authority to bring civil actions, authorizes civil penalties of up to $1,000 for a first violation and up to $5,000 for subsequent violations, and allows courts to award additional legal and equitable relief. It also creates a private right of action for aggrieved prospective employees or employees within one year of a violation, with a notice-and-cure process for posting violations. Employers that violate the section may be liable for actual damages and other relief, and penalties collected go to the general fund.
The available record shows no committee transcript or recorded vote data, so there is no documented floor or committee debate to characterize. Based on the enacted text, the bill reflects a policy direction favoring pay transparency and limiting reliance on prior compensation in hiring, which is generally associated with efforts to reduce pay inequities and improve applicant bargaining power. Because the bill was enacted as Chapter 1063, the overall legislative outcome was favorable.
The main points of contention inherent in the bill are likely to be employer compliance burdens, the requirement to disclose salary ranges in all job-related postings, and the new private enforcement mechanism with civil penalties and damages. Employers may view the good-faith salary-range requirement and the prohibition on asking about salary history as limiting hiring flexibility, while supporters would emphasize transparency and fairness in compensation. The bill softens one area of concern by allowing voluntary disclosure of salary history and by providing a 15-business-day cure period for deficient job postings before a private action may proceed.