The CSHO is similar to California's Salary History Ban law, which also prohibits employers from seeking salary history information from an applicant or relying on salary history information when determining whether to hire the applicant or how much to pay the applicant.

For more information on the CSHO, visit the San Francisco Office of Labor Standards Enforcement (OLSE). You can also contact the OLSE by phone at (415) 554-6469, or by email at salaryhistory@sfgov.org.

Employers Covered Under the CSHO

The CSHO applies to any employer required to register to do business in San Francisco, including job placement, referral and other employment agencies. The CSHO does not apply to any local, state or federal government except the city of San Francisco.3

• The CSHO also applies to any contractor or subcontractor.4 A contractor is defined as any person or entity who enters into a contract or property contract with the city of San Francisco. A subcontractor includes any person or entity who enters into an agreement with any city contractor, including an agreement with any subcontractor for the performance of 10 percent or more of any subcontract.5 Please see the OLSE for more information.

Applicants and Employees Covered Under the CSHO

A covered applicant is any person applying for employment to be performed in the geographic boundaries of San Francisco and whose application, either in whole or part, will be solicited, reviewed, processed or considered in San Francisco.6

The CSHO also covers current or former employees who apply for employment with a new prospective employer.7 For more information, see “Release of Salary History Prohibited” on this page.

The CSHO excludes applicants applying for employment with their current employer.8

Employer Restrictions

Off-Limit Inquiries

Under the CSHO, you may not inquire about an applicant's current or prior salaries or wages, whether directly, indirectly, personally or through an agent, including in applications or interviews.9 You may engage in discussion with an applicant about his or her salary expectations without inquiring about salary history.10 California's Salary History Ban law does not address whether employers may do this.

• Review job applications to make sure they are not asking the applicant questions about current or prior salary. Review other hiring forms, practices and policies to ensure that you are not relying on salary history information. Train all managers and supervisors involved in the hiring process. For more information on job applications, see “Applications for Employment” in the Recruiting and Hiring section of the HR Library.

No Consideration of Salary History Allowed

You may not consider or rely on an applicant's salary history as a factor in determining:

• Whether to offer employment to the applicant; or
• What salary to offer an applicant.11

If you conduct a background check that discloses an applicant's salary history, that salary history cannot be considered in determining whether to offer employment to the applicant or what salary to offer the applicant.12

The San Francisco Fair Chance Ordinance has specific prohibitions and requirements related to conducting criminal background checks. For information regarding California's background check laws, see “Restrictions on Obtaining Criminal History” page in the Background Checks and Testing section of the HR Library.

The CSHO allows an employer to consider an applicant's salary history when an applicant voluntarily and without any prompting discloses such information.13 However, salary history alone cannot justify a pay disparity between employees of different genders, races or ethnicities who perform substantially similar work.

California's Salary History Ban contains a similar provision allowing employers to consider salary history voluntarily disclosed by applicants. However, you must keep in mind that the Fair Pay Act specifies that prior salary cannot, by itself, justify an employer paying different wages to employees of different genders, races or ethnicities who are performing substantially similar work. For more information, see Wage Equality — Fair Pay Act.

• Moreover, a decision from the Ninth Circuit Court of Appeals held that prior salary can never justify a pay differential.14 Thus, employers may not consider prior salary history when deciding an applicant's salary, even if it is voluntarily disclosed by the applicant.

Release of Salary History Prohibited

If your current or former employees have applied for employment with a prospective employer, you may not release that current or former employee's salary history to the prospective employer unless you obtain written authorization from your current or former employee.15 Limited exceptions include instances where the release of salary history is required by law, is part of a publicly available record or is subject to a collective bargaining agreement.

Retaliation Prohibited

You cannot refuse to hire or otherwise retaliate against an applicant for not disclosing his or her salary history to you.16

Notice and Posting Requirements

The CSHO contains notice and posting requirements.

You must post the official CSHO notice informing applicants and employees of their rights under the Ordinance. The notice must be posted in a conspicuous place at every workplace, job site or other location in San Francisco or on San Francisco property that is under your control and frequently visited by employees or applicants.17 You must also send a copy of the notice to any labor union representing your employees in San Francisco.

The notice must be posted in English, Spanish, Chinese and any language spoken by at least 5 percent of the employees at the workplace, job site or other location where it is posted.

• San Francisco Labor Law Posters

Enforcement

The OLSE enforces the CSHO.18 An applicant or employee may report suspected violations of the CSHO to the OLSE.19 If the OLSE finds a violation, it will issue warnings and notices to correct for first violations. For subsequent violations, the OLSE may impose an administrative penalty of up to $100 for each employee or applicant whose rights were violated. The penalty may increase up to $200 per employee or applicant for a second violation occurring within twelve months of the first violation, and up to $500 for each additional violation thereafter, for each employee or applicant whose rights were violated. These penalties are payable to the city.20

If multiple employees or applicants are affected by the same procedural violation at the same time, such as where all applicants for a certain job are asked for their salary history on an initial application, the OLSE has discretion to treat those violations as a single violation and not multiple violations.21

The OLSE may initiate an administrative enforcement action for any suspected violation of the CSHO within one year of the date the suspected violation occurred.22

There is no private right of action, but the OLSE may refer matters to the city attorney for civil action.23 A civil action must be filed within one year after the date of the CSHO violation was discovered or could reasonably have been discovered.24 Remedies may include any legal or equitable relief that is appropriate to remedy the violation, including interest on all amounts due and unpaid.25

Enforcement procedures vary for city contractors and subcontractors. If you are a city contractor or subcontractor, please visit the OLSE for additional information.

1. San Francisco Labor and Employment Code (L.E.C.), art. 61, secs. 61.1-61.8

2. San Francisco L.E.C., art. 141, secs. 141.1-141.9

3. San Francisco L.E.C. sec. 61.3

4. San Francisco L.E.C. sec. 141.1

5. San Francisco L.E.C. sec. 141.1

6. San Francisco L.E.C. sec. 61.3

7. San Francisco L.E.C. sec. 61.4(d)

8. San Francisco L.E.C. sec. 61.3

9. San Francisco L.E.C. secs. 61.3, 61.4(b)

10. San Francisco L.E.C. sec. 61.4(g)

11. San Francisco L.E.C. sec. 61.4(a)

12. San Francisco L.E.C. sec. 61.4(h)

13. San Francisco L.E.C. sec. 61.4(e), (f)

14. Rizo v. Yovino, 887 F.3d 453 (9th Cir. 2018)

15. San Francisco L.E.C. sec. 61.4(d)

16. San Francisco L.E.C. sec. 61.4(c)

17. San Francisco L.E.C. secs. 61.5(a), (b)

18. San Francisco L.E.C. sec. 61.6(a)

19. San Francisco L.E.C. sec. 61.6(b)

20. San Francisco L.E.C. sec. 61.6(c)

21. San Francisco L.E.C. sec. 61.6(f)

22. San Francisco L.E.C. sec. 61.6(e)

23. San Francisco L.E.C. secs. 61.6(d), (j)

24. San Francisco L.E.C. sec. 61.6(m)

25. San Francisco L.E.C. secs. 61.6(j), (k)