New Delaware Law Prohibits Pay History Inquiries

Joining Massachusetts, Oregon, New York City and Philadelphia in an attempt to address the gender pay gap, Delaware has passed a law prohibiting employers from asking applicants about their compensation history. Under the new law, which takes effect in December 2017, employers may not seek the applicant’s compensation history from the applicant or former employers. Compensation is broadly defined as wages and “benefits and other forms of compensation.” Applicants, however, may voluntarily disclose their compensation history and, under those circumstances (and contrary to the other jurisdictions’ laws), the employer is not prohibited from setting pay based on that information.

The employer is specifically permitted to discuss and negotiate compensation, as long as it does not request or require the applicant’s compensation history. Also unlike the other jurisdictions’ laws, employers may request and obtain compensation history after making a job offer with terms of compensation, solely in order to confirm the applicant’s compensation history.