It is illegal to ask about salary history in 20 states across the United States. These laws are designed to promote pay equity and prevent the perpetuation of wage disparities based on previous lower pay.
Understanding Salary History Bans
Salary history bans prohibit employers from asking job applicants about their past or current compensation. This includes direct questions during interviews, inquiries on job applications, or even asking third parties for this information. The primary goal of these laws is to ensure that a candidate's future earnings are based on their qualifications, skills, and the value of the position, rather than on a potentially discriminatory or lower salary from a previous job. By removing salary history from the hiring process, these bans aim to close gender and racial wage gaps.
States Prohibiting Salary History Inquiries
Currently, the following 20 states have enacted laws making it illegal for employers to inquire about a job applicant's salary history:
| State |
|---|
| Alabama |
| California |
| Colorado |
| Connecticut |
| Delaware |
| Hawaii |
| Illinois |
| Maine |
| Maryland |
| Massachusetts |
| Nevada |
| New Jersey |
| New York |
| North Carolina |
| Oregon |
| Pennsylvania |
| Rhode Island |
| Vermont |
| Virginia |
| Washington |
While many cities and counties also have their own local salary history bans in effect, and jurisdictions like the District of Columbia also prohibit such inquiries, the count of states specifically stands at 20.
Implications for Employers and Job Seekers
These prohibitions significantly impact the hiring process for both employers and job seekers.
- For Employers:
- Employers must shift their focus from an applicant's past pay to establishing a salary range for the position based on job responsibilities, market rates, and internal equity.
- They are encouraged to proactively provide salary ranges in job postings, fostering transparency.
- Hiring managers need training on what questions are permissible and how to conduct interviews without violating these laws.
- For Job Seekers:
- Applicants can negotiate based on their skills, experience, and the market value of the role, rather than being anchored to previous lower wages.
- It empowers individuals to seek fair compensation without their past earnings limiting their potential.
These laws represent a significant step towards creating a more equitable job market, ensuring that an individual's value is determined by their capabilities and the role they perform.
