Salary History Ban Laws

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The city is not allowed to ask applicants for their salary history until they have been hired at an agreed salary. The county will not seek or rely on a candidate`s salary history as a factor in deciding whether to hire the candidate or determine salary. The county cannot retaliate or refuse to hire a candidate if the applicant refuses to disclose their salary history. The county may rely on a candidate`s voluntarily disclosed salary history to offer them a higher salary than originally offered, provided it does not result in unequal pay for equal work based on sex. Yes. Employers cannot request salary history information from current employees in order for them to be interviewed or considered for promotion. However, employers may consider information they already have for current employees (i.e. the current salary of a current employee or benefits paid by that employer). For example, an employer can use an employee`s current salary to calculate a raise, but cannot ask that employee what the salary is for other jobs. A salary history ban prohibits employers from asking applicants about their past or current salary. These prohibitions were introduced to promote pay equity, which particularly benefits those who may have faced gender or racial wage gaps in previous jobs. In jurisdictions where salary history is prohibited, salaries offered for vacancies cannot be negatively compared to candidates` previous salaries. Conversely, in some cases, voluntarily disclosed prior compensation may be validated to negotiate a higher salary offer for a candidate.

Rhode Island has passed a law that prohibits salary history and requires disclosure of salary ranges as of January 1, 2023. Under the new law, if a candidate voluntarily submits their salary history to justify a higher salary, the employer can review that salary history when assessing whether to increase the candidate`s compensation offer. Rhode Island employers must also provide a salary range for a position at the request of a candidate or employee changing positions. Since the start of the 2020-2021 legislature, dozens of state lawmakers have introduced a wide range of salary history laws, including in several conservative-dominated legislatures such as Florida, West Virginia, and Kentucky.24 It`s important to build on this momentum with strong federal laws to ensure workers are protected. it doesn`t matter where they live or work. While this question was a common feature of the interview process and was even expected in past years, it is now prohibited in many places. More states and local governments, such as those in Massachusetts, Hawaii and New York, have passed laws prohibiting employers from requesting salary history information from applicants. Proponents of these types of laws believe that when employers ask potential employees about their salary history, it perpetuates wage inequality based on gender and other factors as workers move from one job to another. Ultimately, the aim of this type of legislation is to eliminate wage discrimination between women, minorities and other historically underpaid workers. Employers are not allowed to search for salary history. However, you can confirm this information if the applicant discloses it voluntarily or if an offer has been extended. Do you want to know when new salary history bans will be issued? Sign up for our newsletter.

Do you have a question or comment? Send us an email. Employers cannot request a candidate`s pay history, including compensation and benefits, in an application or otherwise. Employers are also not allowed to search publicly available records. Finally, employers should not rely on known information on salary history to determine compensation. Banning employers from relying on pay history in hiring or compensation decisions is an important step in the fight for equal pay and will help address a significant structural barrier for women, especially women of color. However, this measure alone will not be enough to reduce the gender pay gap. On the contrary, it must be a key element of a more robust and comprehensive effort towards equal pay. Congress must pass the Pay Equity Act, which was reintroduced in the House of Representatives in January 2021.27 The bill would not only prohibit employers across the country from seeking or relying on wage history, but would also promote pay transparency, protect workers from retaliation, strengthen existing equal pay protections, and go much further to ensure equal pay and reduce the gender pay gap.

Reduce the number of people of colour at the federal level. The City will not seek salary history, nor will it select candidates based on their current or past salary, compensation or other benefits. The city will not rely on salary history to set salaries or decide whether or not to offer a job to a candidate. Once a job offer has been made, a candidate can offer a salary history to negotiate a higher salary. What should an applicant do if they believe they have received reprisals for refusing to provide salary history information? Consciously or unconsciously, employers often anchor collective bargaining on a candidate`s previous salary and leave only limited room for adaptation. This practice holds back women of color and Black workers: research shows that women and people of color are less successful in negotiating their wages, largely due to biased perceptions and double standards.7 In addition, the use of past salary to screen candidates is often based on the erroneous assumption that a candidate earns a lower salary is of lower quality than a candidate with a higher salary or that a candidate with a higher salary would not accept a lower offer. These assumptions may exclude qualified candidates from employment opportunities. Therefore, using salary history in a hiring or selection decision is a structural practice that can both maintain lower incomes for women and workers of color and maintain the status quo of a less diverse workforce.

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