Keith Mack
Asking about a candidate's salary history has been a common practice in job interviews. However, there is a growing trend of states and local governments enacting laws that prohibit employers from asking about or considering an applicant's salary history. These laws aim to address pay inequity, particularly for women and minorities, as relying on salary history can perpetuate past pay discrimination. As of 2023, 22 states and 21 cities or localities have implemented such bans, with variations in scope and enforcement. While some states like California, New York, and Illinois have strict prohibitions, others like Alabama and Michigan have more limited restrictions. These laws require careful navigation by employers, especially those operating across multiple jurisdictions, to ensure compliance and avoid legal repercussions.
| Characteristics | Values |
|---|---|
| Purpose | To reduce pay inequity for women and minorities |
| Scope | Federal law and the laws of many states |
| Applicability | Employers, employment agencies, employees or agents |
| Compliance | Anyone involved in screening, interviewing, or assessing applicants must be aware of and comply with the law |
| Salary history | Prohibited from being asked by employers or considered during the hiring process |
| Salary range | Can be asked by the applicant |
| Salary discussion | Can be delayed until after the interview |
| Salary disclosure | Not mandatory for the applicant |
| Violation | Contact an employment lawyer |
Explore related products
What You'll Learn
Salary history bans
Several states and municipalities in the United States have enacted bans on asking for previous salary information. These include Alabama, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Wisconsin.
The laws in these states vary in terms, scope, and applicability. For example, in California, private and public employers are prohibited from seeking a candidate's pay history. In New York City, employers are banned from querying about job candidates' wage history, but they can seek salary history information after making a conditional offer of employment. Similarly, in Michigan, state departments and certain autonomous agencies may not ask about a job applicant's salary history until a conditional offer of employment is extended.
If your area doesn't have a salary history ban, you can try to delay the salary discussion until after the interview or ask what the salary range is for the position. If you think you're being paid less than a male counterpart with similar experience and qualifications, you should talk to an employment lawyer.
Law Firms: Can They Threaten Your Social Security Number?
You may want to see also
Explore related products
Equal Pay Act
In the United States, the Equal Pay Act of 1963 (EPA) is a federal law that prohibits sex-based wage discrimination between men and women who perform jobs requiring substantially equal skill, effort, and responsibility under similar working conditions. The EPA is part of the Fair Labor Standards Act of 1938 and falls under the jurisdiction of the Equal Employment Opportunity Commission (EEOC). The EPA aims to correct wage differentials based on sex that depress living standards and prevent the maximum utilization of labor. It covers all forms of pay, including salary, overtime pay, bonuses, stock options, and benefits.
The EPA ensures that individuals with equal pay claims are protected from unlawful retaliation by their employers. This protection extends to situations where an individual opposes discriminatory employment practices, files a discrimination complaint, or participates in an investigation or litigation under the Equal Pay Act. Additionally, the EPA prohibits employers from reducing the wages of either sex to equalize pay in cases of inequality.
While the EPA establishes federal protection against compensation discrimination, subsequent laws have expanded upon these protections. These include Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA) of 1967, and Section 501 of the Rehabilitation Act of 1973. These laws prohibit compensation discrimination based on race, color, national origin, religion, disability, genetic information, sex, age, and retaliation for engaging in protected Equal Employment Opportunity (EEO) activity.
In addition to federal law, certain states have implemented their own salary history bans, which prohibit employers from requesting or using an applicant's previous salary information during the hiring process. States like California, New York, and Atlanta have enacted such bans, preventing employers from seeking salary history and using it to determine new hire pay. However, states like Michigan have chosen to forbid salary history bans, allowing employers to inquire about salary history.
It is important to note that the existence of the EPA and similar laws does not eliminate the gender pay gap. Legislators are recognizing that certain practices, such as relying heavily on an applicant's previous pay, perpetuate inequality in pay, even without discriminatory intent. As a result, salary history bans are gaining traction to address these disparities.
Common-Law Wife: What Are Her Entitlements?
You may want to see also
Explore related products
$12.61 $25.99
Pay discrimination
Other laws enforced by the Equal Employment Opportunity Commission (EEOC) include Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 (ADEA), the Americans with Disabilities Act of 1990 (ADA), the Rehabilitation Act of 1973, and the Genetic Information Nondiscrimination Act of 2008 (GINA). These laws prohibit pay discrimination based on race, colour, religion, sex, national origin, age, or disability.
Despite these laws, the gender pay gap persists, and legislators are recognising that certain practices perpetuate inequality in pay. One such practice is relying heavily on an applicant's previous pay when setting a new salary. This often causes pay inequality to follow women from job to job.
Some states have introduced salary history bans to prevent employers from asking about an applicant's pay history. For example, California has prohibited private and public employers from seeking a candidate's pay history. Even if this information is volunteered by the applicant, it cannot be used to determine their new pay. Other states with similar laws include New York, Michigan, and Ohio. However, some states, such as Texas, West Virginia, Tennessee, and New Mexico, do not have such bans in place.
In conclusion, pay discrimination is illegal, and there are laws in place to protect individuals from unequal pay based on protected characteristics. While this is the case, pay inequality, particularly between genders, still exists, and some states are taking action to address this through salary history bans.
Common-Law Wife: Entitled to Social Security Benefits?
You may want to see also
Salary expectations
Salary history bans are becoming more common across states and localities. These laws prohibit employers from asking about or relying on an applicant's pay history to determine wages. States such as California, New York, and Atlanta have implemented such bans, preventing employers from seeking or using salary history information unless voluntarily disclosed by the applicant.
If you live in an area with a salary history ban, you are protected by law from having to disclose your current or previous salary during the hiring process. However, if your state or city does not have such a ban, you may need to answer salary questions from employers. In these cases, it is essential to research the average salary range for the position you are applying for and consider your cost of living expenses to determine your salary expectations.
When asked about your salary expectations during a job interview, it is advisable to approach the question tactfully and professionally. You can start by thanking the interviewer for bringing up the topic and acknowledging the importance of discussing compensation. For example, you could say, "Thank you for asking about my salary expectations. I appreciate the opportunity to discuss compensation, as it's an important aspect of the job search process."
It is also beneficial to demonstrate your enthusiasm for the role and express your eagerness to contribute to the company's success. Be prepared to negotiate and find common ground with the employer by understanding their perspective and concerns. However, be willing to walk away if the employer cannot meet your salary expectations or offer a suitable compensation package.
When providing a number, it is generally better to offer a range rather than a single figure. Make sure the range is somewhat tight, with a variance of no more than $5,000 to $10,000. For instance, you could say, "I am looking to receive between $83,000 and $87,000 annually. Due to my skill set and experience level, I believe this is a comfortable and appropriate range for my work."
Retroactive Laws: When Do They Apply?
You may want to see also
Compliance and penalties
Compliance with the law is the only way for employers to avoid fines for violating salary history bans. Employers must ensure that anyone involved in screening, interviewing, or otherwise assessing applicants (including third-party recruiters or investigators) is aware of and complying with the law. This includes training HR staff and hiring managers on how to avoid asking salary history questions and ensuring they do not base job offers or salaries on salary history, even if the information is volunteered by the applicant.
In California, for example, the law prohibits private and public employers from seeking a candidate's pay history and requires employers to provide applicants with the pay scale information if requested. San Francisco has a similar ordinance, which also bars employers from disclosing a current or former employee's salary information without their consent.
Other states with salary history bans include Alabama, Delaware, Illinois, and New York. Illinois completely prohibits employers from seeking or relying on salary history, while Alabama prohibits retaliating against applicants who refuse to provide wage history but does not prohibit employers from seeking that information. New York City and Suffolk County, New York, go beyond prohibiting employers from asking about salary history, also forbidding them from searching publicly available records.
Some states, like Michigan, allow employers to ask about salary history but only after making a conditional job offer. This only applies to state agencies, however, as Michigan has a law stating that the state cannot prohibit employers from asking about salary history.
While there is no federal salary history ban, legislators are recognizing the need to address pay inequities, especially for women and minorities, and the role that past pay discrimination plays in perpetuating these inequalities. The federal Equal Pay Act and similar state laws make it illegal for employers to pay men and women different wages for the same work, but the gender pay gap persists.
A Career in Law Enforcement: Am I Eligible?
You may want to see also
Frequently asked questions
Salary history bans are laws that prohibit employers from asking applicants about their current or past salaries, benefits, or other compensation. These bans are in place to reduce pay inequity for women and minorities, as past pay discrimination is often perpetuated when employers make decisions based on applicants' prior salaries.
If your state or locality prohibits employers from asking about your salary history, then do not disclose this information. You can ask about the salary range for the position instead and share your salary expectations.
If you've been asked for your salary history in violation of state law, or you aren't receiving equal pay for equal work, contact an employment lawyer to discuss your legal options.
