Assembly Bill 512 aims to enhance employee rights regarding compensation information by prohibiting employers from soliciting or relying on a prospective employee's current or prior compensation when making employment decisions. Specifically, the bill makes it unlawful for employers to ask for this information before extending a job offer, to set criteria based on prior compensation, or to discriminate against applicants for exercising their rights related to compensation disclosure. Additionally, the bill repeals existing provisions that allowed employers to solicit such information. It also protects current employees from retaliation for discussing their compensation or that of their colleagues.

The bill establishes a framework for enforcement, allowing individuals who experience discrimination based on compensation information to file complaints with the Department of Workforce Development (DWD) or pursue civil action in circuit court. If discrimination is found, the court may award back pay, compensatory damages, and punitive damages, with specific limits based on the size of the employer. Employers are required to post notices informing employees and prospective employees of their rights under this new law, and failure to comply may result in penalties. The DWD is tasked with adjusting damage limits annually based on changes in the consumer price index.