By Catherine Hodder, Esq. | Last updated on February 05, 2024
The average person will have 12 jobs in their lifetime, a significant change from years ago when people stayed in one job their entire adult life. For many people, switching employers may be the fastest way to earn a higher salary.
When looking for a new job, you may wonder if a prospective employer can ask you about your salary at your current or previous jobs.
An applicant’s salary history is particularly concerning with the rise in remote jobs. Employers may feel they can pay less than your previous in-person position if you will be working from home.
The Biden administration recently set forth two federal policy changes about salary history requests. The new rules prohibit the government from using salary history in creating government pay scales and federal contractors from asking for and considering salary history in employment matters. In his statement about the changes, Biden said, “Despite progress, the fight for equal pay continues.”
The Problem With Salary Questions
Asking for a salary history may seem like an innocuous and even practical question. Salary negotiations are a critical part of the hiring process. But this can actually lead to pay discrimination, making it impossible to ever earn what you are worth since employers may set your pay based on your last salary.
Listing previous salaries from former employers can drastically reduce your bargaining position in wage negotiations. If you refuse to offer numbers, however, you could lose a great job opportunity.
Salary history is particularly an issue for women, who, on average, earn 82 cents on the dollar compared to men. They may have more gaps in employment due to child-rearing, which leads to inconsistent compensation.
Connecticut AFL-CIO President Sal Luciano told Connecticut lawmakers that “Using salary history to evaluate and compare applicants’ job responsibilities and achievements assumes
that prior salaries are an accurate measure of an applicant’s experience and achievements, and not the product of discrimination or gender bias.”
Can Employers Ask About Salary?
Under federal law, employers can ask job applicants about current and past salaries. However, many states have their own laws about this question. The following states have salary history bans:
· Alabama
· California
· Colorado
· Connecticut
· Delaware
· District of Columbia
· Georgia
· Hawaii
· Illinois
· Kentucky
· Louisiana
· Maine
· Maryland
· Massachusetts
· Minnesota
· Mississippi
· Missouri
· Nevada
· New Jersey
· New York
· North Carolina
· Ohio
· Oregon
· Pennsylvania
· Puerto Rico
· Rhode Island
· South Carolina
· Utah
· Vermont
· Virginia
· Washington
California has one of the strongest laws. Private and public employers cannot ask for your salary history information; even if they have it, they cannot use it to set your pay. New York has a similar law in place.
Other states, such as Michigan, allow employers to ask compensation history, but not until after making a conditional job offer. This law only applies to state agencies, however. According to its own laws, the state cannot prohibit employers from asking about salary history.
Some cities have passed similar laws, such as Toledo, Ohio. In Toledo, however, potential employers cannot use this information to screen applicants, offer employment, or set salaries.
Some states, such as Texas, West Virginia, Tennessee, and New Mexico, remain silent, permitting this type of question.
Should You Disclose a Past Salary?
Before applying for a new job, find out your state laws about salary history. Even if employers can make salary history inquiries, you do not have to answer. During the interview process, you should weigh the repercussions of refusing to answer (not getting the job) against the possible salary discrimination you could face if you provide the information.
One way recruiters get around these legal hurdles is to ask about your salary expectations in the job interview, forcing you to name your salary range. If you have an unfairly low-wage history, knowing what to ask for can be challenging.
The bottom line is this: Don’t answer a salary history question if your state or local government prohibits employers from asking, and tread carefully otherwise. It’s better to try to get the hiring manager to make an offer of employment before you disclose your current salary or pay history.
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