Connecticut Law Creates Wage Transparency

This summer, Connecticut Governor Dannel Malloy signed “An Act Concerning Pay Equity and Fairness” into law to help create an environment where employees can discuss their wages with other individuals without punishment. Under the new law, employers cannot prohibit employees from disclosing or discussing his or her wages or wages of another employee. Employers are also prohibited from requiring an employee to sign a waiver or document that denies the employee the right to disclose or discuss his or her wages, or wages of another employee. If an employee discloses or discusses his or her wages, or those of another employee, an employer cannot discharge, discipline, discriminate against, retaliate against, or otherwise penalize the employee.

Employees who believe their rights under this Act were violated, have up to two years from when the violation occurred to file a formal complaint. As stated under the law, if an employer is found guilty of violating a provision(s), he or she may be liable for compensatory damages, attorney’s fees and costs, and punitive damages. To ensure compliance, Connecticut employers must review policies. The law is in effect.