
State and local governments are increasingly adopting laws and regulations that prohibit employers from requesting salary history information from job applicants. The laws are aimed at ending the cycle of pay discrimination and some go further than merely banning pay history questions. A few also prohibit an employer from relying on an applicant's pay history to set compensation if discovered or volunteered; others prohibit an employer from taking disciplinary action against employees who discuss pay with coworkers.
Until recently, employers in all states could ask applicants about their current salaries or what they made at previous jobs. However, with a renewed national focus on gender inequality in pay, many states are considering salary history bans that prohibit this practice. So far, only a handful of states and cities have passed such laws. However, employers should be aware that more laws could be on the horizon and be mindful of equal pay laws when negotiating an applicant’s salary.
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Salary history bans are designed to address gender pay inequality. Although it has long been illegal for employers to pay men and women different wages for the same work, a significant pay gap still exists. According to a report from the Bureau of Labor Statistics, women earned 82% of what men earned in 2016. For minority women, the pay gap is generally even more pronounced.
When employers continue to base salaries on an applicant’s past earnings, it can be impossible for women to break free of the cycle of discriminatory pay practices. Low pay can continue to follow them from job to job over the course of their careers. The salary history ban is designed to put a stop to that.
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