Relating to: prohibiting an employer from relying on information about a prospective employee’s compensation when making employment decisions or inquiring about a prospective employee’s compensation and from restricting an employee’s right to disclose compensation information, allowing actions in circuit court, and providing a penalty. (FE)

SB 540 bans employers from asking job applicants about their past pay or using that information in hiring decisions. It also protects employees’ right to discuss, share, or ask about their own or coworkers’ pay without employer interference. Violations can be reported to the labor department or pursued in court, with remedies including back pay, reinstatement, and capped damages up to $300,000 based on employer size. The law directly affects all employers and employees in the state, aiming to reduce pay discrimination by promoting transparency.