Salary history bans are becoming a standard part of employment regulations across the United States. These laws restrict employers from inquiring about an applicant’s previous compensation during the hiring process. As these regulations continue to expand, understanding their requirements is essential for employers to remain compliant and streamline their recruitment practices.
What Are Salary History Bans?
Salary history bans are laws that prohibit employers from asking job candidates about their current or past salaries. The intent is to reduce pay inequities, particularly for women and historically underpaid groups, by ensuring offers are based on the role’s value rather than prior compensation.
These laws vary by jurisdiction. For example, Washington State’s Equal Pay and Opportunities Act prevents employers from seeking or requiring an applicant’s salary history, though applicants may voluntarily disclose this information. Other states and cities impose similar restrictions, with some extending bans to include restrictions on using salary history to determine job offers or pay.
How Do These Laws Affect Employers?
For employers, salary history bans require changes to how hiring managers and recruiters approach interviews, applications, and offer negotiations. The focus shifts to evaluating candidates based on their qualifications and the role’s market value, rather than relying on previous compensation data.
Noncompliance with salary history bans can lead to fines, lawsuits, or other legal challenges. Organizations with multi-state operations face additional complexity due to varying laws.
Compliance Best Practices
To adapt to salary history bans, employers should consider the following:
- Review Hiring Processes: Ensure job applications and interviews exclude salary history questions.
- Focus on Market-Based Compensation: Use market data and internal pay structures to set salary ranges for roles.
- Train Hiring Teams: Educate staff on compliant hiring practices and how to discuss compensation without referencing salary history.
- Clarify Voluntary Disclosure: If a candidate voluntarily shares their salary history, document the disclosure to avoid legal risks.
By staying informed and proactive, employers can maintain compliant hiring practices while offering competitive and equitable compensation. For additional information, visit our Salary History Bans resource page.
