How the Salary History Ban Affects You

As of last week, New York has implemented a new law that bans employers from asking a candidate about their salary history. This same ban already exists in Oregon and New Orleans. More states and cities are following suit and approved bans are rolling out in California (read more), Delaware, Massachusetts, and Puerto Rico over the next few months.

Advocates of the ban hope for it to decrease the gender pay gap and fight wage discrimination, allowing candidates to be paid what they are worth and not be held back by their current or previous salary. 

If your organization operates in one of those states affected by the ban, what does this law mean for you and your current hiring process ?

• It is illegal to ask a candidate to disclose their salary history throughout the entire hiring process.
• You are not allowed to rely on the salary history of a candidate when determining or negotiating his/her salary amount.
• There are significant penalties for violating the law. In New York, penalties can include fines up to $250,000.

What questions can you ask? 

• You can ask a candidate their salary expectations or anticipated salary.
• You can consider an employee’s salary history if the applicant’s disclosure is made “voluntarily and without prompting.”
• You can inquire about "objective measures" that gauge a candidate’s success or productivity such as annual bonuses and commissions.

Often salary history is not used in an effort to “low-ball” the candidate, but in an effort to create an appealing offer, and effectively recruit them for your organization. This can still be accomplished by asking “What would your salary expectations be for this position?”.

This legislative trend is not expected to slow, so employers should educate themselves on the laws and begin adjusting their recruiting process in advance to ensure compliance. Let’s have a discussion--what are your thoughts on the changes?

Interested in learning how SCOPE Recruiting can help identify top talent for your Supply Chain and Operations hiring needs?