State and Local Restrictions on Obtaining Salary History

State and Local Restrictions on Obtaining Salary History

Recent legal enactments have begun to restrict employer inquiries regarding an applicant’s salary/wage history. 

Many recent legal enactments have determined that it is an unlawful discriminatory practice for a firm, or an agent thereof, to ask about, or make a statement for the purpose of determining, the salary history of an applicant or to rely on the salary history, benefits or other compensation for such applicant, including during the negotiation of a contract.

While the focus has been on income disparity for women, these restrictions apply to all applicants regardless of gender, race, etc. 

Traditionally, enactments were made by various states (such as Massachusettes and California), but now legislative action is also at the municipal level (such as New York City NY and Philadelphia PA).  Monitoring major cities is complex, but effectively monitoring smaller municipalities is nearly impossible.  (The enactment of such laws by small cities and towns will have minimal to no news coverage that such an ordinance has been enacted.)

Take Away: A Matter of Fact no longer requests/verifies salary information on Employment Verification Reports.

Resources:

https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/california-salary-history.aspx

 

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