Starting July 1, the Virginia Department of Human Resource Management will introduce an updated app for government agencies that eliminates the field of salary history, according to a June 20 announcement by Gov. Ralph Northam. In some states and locations, it is indeed illegal to ask for salary history during a job interview or when reviewing or hiring a candidate. Currently, there are 17 statewide wage history bans (including the Commonwealth of Puerto Rico), 17 local bans, 2 laws prohibiting bans, and 1 legal challenge to a ban in the United States. The U.S. Bureau of Labor Statistics publishes research and information on women`s income annually. These statistics are from 1979. Their research showed that in 2018, full-time female employees had a median weekly income that was eighty-one percent of the income of full-time male employees. This has been the norm since 2004, with the rate remaining in the 80-83% range. This gap remains relatively constant throughout the lives of workers. The gap is smallest among workers under 35, where women earn 87-92% of what men earn. In contrast, the gap is largest among workers aged 35 and over, with women`s incomes ranging from 75% to 80% of men`s income. Employers cannot refuse to hire, interview, promote or hire a candidate if the candidate has chosen not to provide a salary history.
This measure aims to eliminate the wage gap between men and women. Women in North Carolina earn less money than men — about 19 percent less than men on average, according to a fact sheet from the governor`s office. Philadelphia was one of the first cities to issue an order to address the issue, and a Third Circuit decision upheld that order on Feb. 6. In 2017 and 2018, major cities such as San Francisco, Chicago, New York, and Philadelphia issued ordinances prohibiting asking questions about salary history. Other notable states that have enacted a ban on salary history include California, New York, Massachusetts, Alabama, Illinois and North Carolina. Employers cannot look for salary history, nor can they rely on pay history when considering a job candidate or determining salary. However, you can confirm and rely on salary history after a job offer has been made to support a higher salary than originally offered. Employers must also provide a salary range for a particular position. Relying on the wage history can perpetuate the wage gap, from the first job and throughout a woman`s career, assuming that the previous salary was fair or free from bias.
Government agencies and departments are not allowed to request salary history from candidates until a job offer has been extended. If a candidate`s previous earnings are already known, this information cannot be used to determine that applicant`s salary unless required by law or a collective agreement. Transparency in compensation does not refer to being supposed to share your current salary or salary history with a potential employer, but rather to the actions of companies that implement full transparency policies so that each employee knows what their colleagues are doing. This is another tool for closing the gender pay gap, as women still earn 79% of what their male counterparts earn. A salary history ban protects employees and potential candidates from being asked for salary history in exchange for an appropriate salary. Although there are currently seventeen local ordinances and twenty national bans, it is likely that this is a new trend that will continue to grow among the states. With few steps taken to ban wage history nationwide, government action is probably the most effective way to prohibit this behavior by employers. Other states, such as Michigan, allow employers to apply, but only for a conditional job offer. However, this only applies to government agencies.
The state actually has a law that states that the state cannot prohibit employers from applying for salary history. Employers are not allowed to request candidates` salary history. If this information is provided voluntarily, employers cannot confirm it until a job offer has been made. Before applying for a new job, find out about your state`s laws regarding salary history. Even if employers are allowed to ask, you don`t have to answer. You should weigh the implications associated with refusing to answer (not getting the job) against the potential wage discrimination you may face if you provide the information. Noting that women are paid less at their first job and that salary history reports can continue to perpetuate gender pay inequality, prohibiting the use of prior salary information during the hiring process can help close the gender pay gap for women, the governor says in the order. Laws aim to break the cycle of wage discrimination, and some go beyond simply prohibiting questions about pay history. Some also prohibit an employer from relying on a candidate`s salary history to determine compensation if it is discovered or voluntarily reported. Others prohibit an employer from taking disciplinary action against employees who talk to their co-workers about compensation. Applications to the city may not be about the salary structure. Government agencies cannot request a candidate`s current compensation or compensation history at any point in the hiring process.
All job postings must clearly indicate the salary range and salary range of a position. State and local governments are increasingly enacting laws and regulations prohibiting employers from requesting information about the salary history of job applicants. Employers cannot apply for or assess candidates based on their salary history. You cannot require that a candidate`s salary history, performance or other compensation meet minimum or maximum criteria. However, employers can discuss candidates` salary expectations. Be careful and inform your hiring managers of any applicable local laws that prevent employers from asking questions on the subject. You can do this through internal communication or by posting a notice in a public place where all current employees can see it. In this way, you can avoid fines or penalties that could result from violating these laws. Also, avoid relying on past salaries when making salary offers to new employees, as some candidates voluntarily provide this information without being asked.
The City will not seek salary history, nor will it select candidates based on their current or past salary, compensation or other benefits. The city will not rely on salary history to set salaries or decide whether or not to offer a job to a candidate. Once a job offer has been made, a candidate can offer a salary history to negotiate a higher salary. *This content does not constitute legal advice. For legal advice, please contact your lawyer. A San Francisco City Order prohibits employers from requiring and considering a candidate`s current or past compensation when determining salary. It also prohibits them from disclosing the salary information of a current or former employee without their consent. For more information on the growing trend of salary history bans, visit our resource library. The employer with 15 or more employees must, at the request of the candidate and after making an offer, provide information on the minimum wage for the position for which the candidate is applying. The county will not seek or rely on a candidate`s salary history as a factor in deciding whether to hire the candidate or determine salary. The county cannot retaliate or refuse to hire a candidate if the applicant refuses to disclose their salary history.
The county may rely on a candidate`s voluntarily disclosed salary history to offer them a higher salary than originally offered, provided it does not result in unequal pay for equal work based on sex. Philadelphia is in a legal limbo as a judge considers a lawsuit to strike down Philadelphia`s new wage justice law. The City will not seek or rely on salary history to determine wages unless an applicant knowingly and willingly discloses salary history. The City will encourage vendors who do business with the City to adopt similar standards, and may consider vendors` wage standards when deciding whether to award municipal contracts. It`s also important to note that Wisconsin and Michigan have ended wage history bans for all employers except State Departments. Local governments in these states may not regulate information requested or requested by employers during the hiring process. California has one of the strictest laws. Private and public employers can`t query your salary history, and even if they have the information, they can`t use it to determine your salary. New York has a similar law. This case is one of the few examples that shows the argument against banning salary history issues in a job interview and how the competent district court ruled on this issue. With competing First Amendment rights, the Third Circle provided an example of how those interests can be weighed and the rule upheld. To help employers, we`ve created a list of states that have issued pay history bans, which employers are affected, and what the specific legislation includes.
An employer can only obtain information about a potential employee`s salary history after a job offer has been negotiated. District government agencies are prohibited from asking applicants for their salary history unless a candidate approaches them after renewing a job offer.
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