GOVERNOR'S VETO

Pursuant to Article V, Section 6 of the Constitution of Virginia, I veto Senate Bill 370, which prohibits employers from seeking the wage or salary history of prospective employees.

While I share concerns regarding wage inequality among women and minorities, the proposed legislation represents government overreach, offering incomplete information during the hiring process, disregarding business needs, and potentially exposing small businesses to lawsuits.

The Commonwealth's objective is to attract, retain, and expand job opportunities, and our laws should not burden or incur excessive costs compared to competitor states. Regulations should consider the overall business expenses, encompassing taxes, fees, insurance, and regulatory obligations, to foster a favorable business climate.

Employers often use candidates' salary history as a benchmark to ensure they offer competitive wages. Compensation decisions rely on various factors such as market value, funding constraints, and labor market competition. Gender or race are legally prohibited from influencing these decisions.

This legislation adopts a one-size-fits-all approach, disregarding the diverse nature of businesses across the Commonwealth spanning various sizes, industries, and geographic locations. While large corporations might navigate the new regulations, smaller companies or nonprofits lacking dedicated human resources departments would struggle, hindering their ability to evaluate candidates effectively.

Addressing wage disparities across gender and racial lines is imperative, but the potential adverse effects on small businesses, prospective employees, and the economy are too high.

Accordingly, I veto this bill.