HR Alert

Delaware: Employers May Not Seek Applicants' Compensation Histories

Law Outlines Prohibited and Permissible Actions

A new law in Delaware prohibits employers from seeking applicants' compensation histories. Highlights of the law are presented below.

Prohibited Employer Actions
It is unlawful for an employer (or its agent) to: screen applicants based on their compensation histories (including by requiring that an applicant's prior compensation satisfy minimum or maximum criteria); or seek the compensation history of an applicant from the applicant or a current or former employer.

Note: For the purposes of the law, if an employer can demonstrate that its agent (who is not an employee) was informed of the requirements of the law and instructed to comply by the employer, then the employer is not liable for actions taken by the agent in violation of the law.

Permissible Employer Actions
An employer (or its agent) and an applicant may discuss and negotiate compensation expectations--provided that the employer (or its agent) does not request or require the applicant's compensation history.

Additionally, an employer (or its agent) may seek the applicant's compensation history after an offer of employment with terms of compensation has been extended to the applicant and accepted--for the sole purpose of confirming the applicant's compensation history.

Additional details are contained in the text of the law. The law is effective December 14, 2017.

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