In an effort to combat wage inequality, Maine Governor Mills signed LD278, an amendment to the Maine Human Rights Act and Equal Pay Law. The amendment added a salary history ban (i.e., prohibiting employers for asking for current or previous salary from candidates) and expanded pay transparency. The passing of this legislature in 2019 made Maine the 8th state to enact a salary history ban.
Summary of the Amended Human Rights Act:
What does this mean for employers?
As pay equity continues to be a concern for many legislators, many states have enacted salary history bans, with some states making strides towards full pay transparency. One of the main reasons that pay transparency and salary history bans are becoming more prominent is because they have been shown to help reduce gender and race-based wage gaps. Due to these changes, it is important for employers to evaluate their compensation practices and ensure that there are no pay discrepancies within comparable jobs. Conducting a robust pay equity analysis can help employers determine whether there are any pay differences based on demographics and where you can make necessary adjustments. This approach will not only keep employers ahead of the continuously changing legislature, but it will help take strides towards a more equitable workforce.