Congress moves to ban salary-history questions, leveling pay negotiations

What it does

This bill amends the Fair Labor Standards Act to prohibit employers from asking job applicants about their salary history, using that history to decide whether to hire them, or using it to set their pay—except after a job offer is made and the applicant voluntarily shares prior wages to negotiate higher pay. Employers who violate these rules face civil penalties of $5,000 to $10,000 per violation and can be sued by affected workers for up to $10,000 in damages plus attorney fees.

Why we flagged it

The bill's core mechanism is a straightforward labor-standards amendment that restricts employer conduct (salary-history inquiries and reliance) to protect worker bargaining power and reduce wage discrimination. It is a protective labor regulation, not a subsidy, carve-out, or deregulation.

What the text implies

• Employers may shift to alternative screening methods (education, certifications, skills tests) that could introduce different forms of bias if not carefully designed.
• The bill permits salary-history reliance only AFTER an offer is made and the applicant volunteers the information—this creates a narrow window and may incentivize applicants to disclose history early to negotiate, potentially undermining the intent.

The full analysis lists 4 implications of this text.

Who it affects

The bill directly protects job applicants and workers by blocking a common employer practice that perpetuates wage inequality and suppresses pay, especially for women and workers of color who have historically earned less. Workers gain a negotiating advantage by preventing employers from anchoring offers to artificially low prior wages, and the private right of action gives them a concrete remedy.