Both state and local governments are increasingly adopting rules and regulations that outlaw employers from requesting salary history information from job applicants.
The Salary History Ban Law is defined as it being unlawful for an employer, employment agency, or their employees to inquire about an applicant’s salary history, or to rely on an applicant’s salary history to determine their salary, benefits, or other compensation during the hiring and contract negotiation process. However, should the applicant voluntarily disclose their salary history to the employer, the employer may rely upon and verify that information.
Salary history includes the applicant’s current or prior wage, benefits, or other compensation, including commissions or profit percentage earned.
The only exception where this law is ineffective is if the applicant voluntarily discloses their salary history to the employer, or if the salary history question is asked in certain states/countries where this law has not been put into effect yet (more on that in a bit!).
Where IS this law effective in/about to be effective in?
Click here to view on a Map where the salary history question is banned.
https://www.hrdive.com/news/salary-history-ban-states-list/516662/
How do I remain in compliance with this new law?
In order to remain lawful and in compliance with state and local law, you should take the following precautions/recommendations:
– Eliminate questions regarding compensation history from all application forms, electronic or otherwise.
– Eliminate questions regarding compensation history from all application forms, electronic or otherwise.
– Employers will not avoid liability if they retain this question on their applications but include a disclaimer that individuals in *insert state/country Salary Ban Law is effective* need not answer the question. In other words, just stick to not asking this question under ANY circumstances!
– Educate and notify all personnel involved in the hiring process that they may not inquire as to an applicant’s salary history. Some suggestions can be holding a Q&A session on this law, a company-wide email being sent, posting notices of this law in common areas, etc.
Background Check Compliance
It is crucial that a Salary History background check is not conducted where this law is effective. When running a background check, employers should specify that information regarding salary history should be excluded from the report.
