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The Latest Trend in Employment Law: Banning Salary History Inquiries
Add salary history to the growing list of inquires off limits to those who interview and evaluate prospective job candidates. As mentioned previously in these pages, several cities and states have passed legislation that, broadly, prohibits a prospective employer in the private sector from asking questions about an applicant's compensation history. With a law recently passed and becoming effective on Oct. 31, 2017, New York City joins Philadelphia, Massachusetts, Delaware, Oregon, and Puerto Rico as the newest member of this club. Similar legislation has been proposed in several jurisdictions, including California, New Jersey and Washington State as well, while New York State, Pittsburgh and New Orleans have enacted laws or issued executive orders prohibiting such inquiries in the public sector.
Rationale Behind the Ban
Employers in most industries are inclined to inquire about a candidate's salary history. Job applications often seek such information; recruiters typically solicit facts about compensation during their intake with job seekers; and questions about prior pay are inevitably addressed during an applicant's initial interview or as the hiring process progresses. Employers like having this information because it can inform decision-making, possibly allowing them to avoid candidates who are too “expensive.” It also assists in the development of compensation packages.
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