The average person will change jobs about 12 times throughout their career. This is a significant shift from the past when people often stayed with one employer for their entire working life. With this trend of job-hopping, many people view switching employers as one of the quickest ways to earn a higher salary. However, one question often looms during the job search process: can potential employers legally ask about your current or previous salary?
The Rise of Salary History Questions
The topic of salary history is particularly concerning with the increasing number of remote job opportunities. Employers might assume that since you’re working from home, they can offer you a lower salary than what you were earning in a traditional in-person role. This assumption can put job seekers in a tough spot, especially when their previous salary does not reflect the current market value for their skills and experience.
Recent Federal Changes on Salary History Requests
In an effort to address the issue of salary history requests, the Biden administration has recently introduced two significant federal policy changes. These new rules are designed to curb the use of salary history in determining pay scales and employment decisions for government roles. Specifically, the federal government is now prohibited from using salary history to create government pay scales, and federal contractors are banned from asking for and considering salary history when making employment decisions.
Why Salary History Questions Can Be Problematic?
At first glance, asking about salary history might seem like a reasonable and even practical question during the hiring process. After all, salary negotiations are a critical part of landing a job. However, these questions can lead to pay discrimination, particularly if employers use your past salary as a benchmark to determine your new pay. This can make it difficult to ever earn what you truly deserve, as your pay might be anchored to a lower starting point from a previous job.
Providing your salary history can also weaken your negotiating position. If you reveal your past earnings, it could limit your ability to ask for a higher salary that reflects the true value of your skills and experience. On the flip side, if you refuse to provide this information, you might risk losing a great job opportunity. It’s a tricky situation that many job seekers find themselves in.
The Gender Pay Gap and Salary History
Salary history questions can be particularly harmful to women, who, on average, earn less than men. According to statistics, women earn about 82 cents for every dollar that men make. This pay gap is often exacerbated by factors such as employment gaps due to child-rearing responsibilities, which can lead to inconsistent compensation over time.
Using salary history as a measure of an applicant’s worth can reinforce existing pay disparities. Connecticut AFL-CIO President Sal Luciano highlighted this issue when he spoke to Connecticut lawmakers. He pointed out that using salary history to evaluate applicants assumes that past salaries accurately reflect an applicant’s experience and achievements, rather than being the product of discrimination or gender bias.
Can Employers Legally Ask About Your Salary?
While federal law does not prohibit employers from asking about your current or past salary, the situation is different at the state level. Many states have taken action to ban salary history questions as a way to promote fair pay practices and reduce wage discrimination. Here are some of the states with salary history bans:
- California: Employers cannot ask for your salary history, and even if they have it, they cannot use it to determine your pay.
- New York: Similar to California, New York prohibits employers from asking for or using salary history to set pay.
- Massachusetts: Employers cannot ask about your salary history during the interview process.
Other states, such as Michigan, have more nuanced laws. In Michigan, for example, employers can ask about your salary history, but only after making a conditional job offer. However, this law only applies to state agencies, and Michigan law does not prevent private employers from asking about salary history.
Some cities have also passed similar laws. In Toledo, Ohio, for example, potential employers cannot use salary history information to screen applicants, offer employment, or set salaries. Meanwhile, states like Texas, West Virginia, Tennessee, and New Mexico have not enacted any laws regarding salary history questions, allowing employers to ask freely.
Should You Disclose Your Past Salary?
Before you apply for a new job, it’s important to research the laws in your state regarding salary history questions. Even if employers are allowed to ask about your salary history, you are not obligated to answer. During the interview process, you should carefully consider the potential consequences of refusing to answer, such as not getting the job, versus the possibility of facing salary discrimination if you do provide the information.
One way recruiters might try to get around these legal restrictions is by asking about your salary expectations instead. This forces you to name a salary range, which can be tricky if your past wages were lower than what you believe you are worth now.
The Bottom Line
Navigating salary history questions can be challenging, especially in states where these inquiries are still allowed. The best approach is to stay informed about the laws in your area and to be strategic in how you handle these questions during the interview process. If your state or local government prohibits employers from asking about salary history, you should feel confident in refusing to answer. In other situations, it might be wise to try to get the employer to make an offer before you disclose your past salary.
In the end, the goal is to ensure that you are being paid fairly for your skills and experience, without being anchored to a lower wage from a previous job. By understanding your rights and being prepared for salary discussions, you can better position yourself to negotiate the salary you deserve.