Connecticut Pay Equity Law

Connecticut passed a new law regarding pay equity, which goes into effect October 1, 2021. The law requires employers to disclose the wage range for vacant positions to applicants and existing employees. For applicants, an employer must provide a wage range to the applicant when the applicant receives an offer or at the applicant’s request. For existing employees, an employer must provide a wage range for the employee’s position when the employee is hired, when the employee changes positions, or at the employee’s request.

The Act defines “wage range” as the range of wages an employer anticipates relying on when setting wages for a position. Employers can determine the wage range for a position by reference to pay scales, current or previous actual wages, or budgets.

In addition, the Act expands the concept gender wage discrimination. The new law prohibits employers from paying someone of the opposite sex less for comparable (rather than equal) work. To determine whether work is comparable, an employer considers several factors including a “composite of skill, effort, and responsibility.” However, the Act explicitly states that employers can take into account geographic location, credentials, skills, education, and training when making compensation decisions.

In light of this new legislation, employers should review their employee compensation and wage disclosure practices.

For any questions about compliance, please contact the attorneys at The Royal Law Firm.