Salary can be adelicatetopic to discussthese days. In an effort to tighten the gender paygap, multiple cities and stateshave bannedemployers from inquiring about salary historyduring job interviews.
What does this mean for hiring managers and potential hires?A levelplaying field.Hiring managers can no longer base joboffers on previouscompensation, and employees can feel confident keeping their numbers to themselves, if they choose.
The locationsthat have enacted this law include:California, Delaware, Massachusetts, New York City, Oregon, Puerto Rico, Philadelphia, and San Francisco.
The next states and cities considering following suit include:Idaho, Maryland, New Jersey, New Orleans, New York, Pittsburgh, Rhode Island, Texas, Virginia, and Washington.
IF YOU ARE HIRING IN THESE LOCATIONS, HERE’S WHAT YOU NEED TO KNOW…
YouCAN NOTask about previouscompensationduring the hiring or negotiation process.This includes all forms of compensation – salary, bonus, equity, etc.
DO NOTsuggest that a potential employee’s past or current salary is important in your decision-making process.
INSTEAD, YOU MAY ASK THE FOLLOWING QUESTIONS…
What are yourcompensation expectations?
Is there anything you would likeus to keep in mind regardingcompensation?
Whatcompensationrangeare you comfortable with?
FORJOB-SEEKERS, THIS IS WHAT YOU NEED TO KNOW…
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If you’reseeking a new positionin one of the locations where the salaryhistoryban has beenpassed, you’reneverrequired to share your currentand/or previouscompensation.
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Youcanvoluntarilydisclose your salaryhistory, but you should never be pressured to – even inadvertently.
Each state and city have slightly different guidelines, so make sure you educate yourselfon the specifics of the ban in your location.
For example, New York Citybans discussingcompensation historyat all stages of the hiring process,howeverpre-employment conversationsregardingsalary expectationsare allowed. If a candidate freely shares their current and/or past salary,hiring managersin NYC,canbase salary determinations on thisinformation.
This legislation is an effort to address and pay inequity, specifically among people of different genders, races and ethnicities. Theban will benefitemployees who have experienced pay discrimination in the pastand maycontinue to be effected, assuming the potential employer will base the new hire’s compensation off the previous compensation.
Do you support the salary history ban law? Or do you think interviewees should be required to share salaryinformation?Either way, now you have thefactsyou need toknow toensure you have all your bases covered when you go into your next interview. Whether you’re a hiring manager or a job-seeker, it’s crucial to have a working knowledge of the latest laws.
Do you have any questions about the salary history ban law? Post them below.
