An Act to repeal 103.36; to amend 111.322 (2m) (a), 111.322 (2m) (b) and 814.04 (intro.); to create 103.135 of the statutes; Relating to: prohibiting an employer from relying on information about a prospective employeeâs compensation when making employment decisions or inquiring about a prospective employeeâs compensation and from restricting an employeeâs right to disclose compensation information, allowing actions in circuit court, and providing a penalty. (FE)
Impact
If enacted, SB540 would significantly alter the landscape of employment law in Wisconsin by amending existing statutes related to employer conduct regarding compensation information. This bill creates a new section, 103.135, which outlines specific unlawful practices concerning prospective employee compensation, thereby protecting applicants from being disadvantaged based on their previous salaries. It aims to prevent a cycle where individuals, particularly those from historically underpaid groups, are continually trapped in lower-paying jobs due to prior compensation history.
Summary
Senate Bill 540 aims to prohibit employers from relying on current or prior compensation information when making employment decisions. Specifically, the bill disallows employers from soliciting such information before an offer of employment is made, as well as penalizing them if they discriminate against prospective employees for disclosing their own compensation information. The intent is to create fairer hiring practices that combat wage discrimination and enhance transparency in compensation discussions.
Contention
There are notable points of contention surrounding the bill. Supporters argue that it promotes equity by reducing bias based on historical earnings, which can perpetuate wage gaps among gender and minority groups. However, critics may express concerns about the potential unintended consequences of restricting employers' ability to assess candidates based on their professional history. Additionally, the enforcement mechanisms outlined in the bill, including the penalties for non-compliance, could also be a topic of debate among stakeholders in the business community.
Crossfiled
An Act to repeal 103.36; to amend 111.322 (2m) (a), 111.322 (2m) (b) and 814.04 (intro.); to create 103.135 of the statutes; Relating to: prohibiting an employer from relying on information about a prospective employeeâs compensation when making employment decisions or inquiring about a prospective employeeâs compensation and from restricting an employeeâs right to disclose compensation information, allowing actions in circuit court, and providing a penalty. (FE)