What Happens in Last Salary Stays in Last Salary

A reminder for employers and employees. Beginning on July 1, 2018, a new section of the Vermont Fair Employment Practices Act came into effect that prohibits employers from seeking information about a prospective employee's current or past compensation--either by asking the prospective employee or his or her current or former employer.

In addition, an employer is now prohibited from requiring prospective employees to meet any sort of minimum threshold or criteria for their level of current or past compensation, and from making any determination on whether to interview a prospective employee based on his or her current or past compensation, if somehow known to the employer.

The exception to the rule is that a prospective employee may voluntarily disclose his or her current or past compensation to an employer if he or she chooses. If so, an employer is authorized to request that the applicant confirm that information, but only after the employer has made a provisional offer of employment. Obviously, the employer would be entitled to withdraw the offer of employment if the employee was found to have been dishonest in his or her representations. Despite these changes to the law, an employer may still inquire about a prospective employee's salary demands and expectations of the job for which he or she is applying.