Can Employers Ask For Salary History?

Can Employers Ask For Salary History?

Updated 1/28/25

If you’ve ever been asked about your previous salary during a job interview, you’re not alone. However, this common question has sparked concerns, particularly around pay equity and fairness. Employers have traditionally relied on salary history to determine compensation for new hires, but that practice is now being scrutinized, and in some places, banned altogether. Here we discuss whether employers can ask for salary history, why they might, and what your rights are as an employee.

Why Do Employers Ask for Salary History?

Employers have historically asked candidates about their salary history for several reasons:

1. Benchmarking Pay: Employers often want to gauge what range of compensation an employee might expect based on their prior earnings.
2. Budgeting: Knowing a candidate’s previous salary helps employers determine if they can afford to hire that individual within their budget for the role.
3. Negotiation Leverage: In some cases, employers use salary history to anchor their job offer, offering a raise that is only incremental to what the candidate was already earning, even if the role requires more responsibility or higher skills.
4. Assessing Fit: Sometimes, salary history is used to assess whether a candidate is over- or under-qualified for a position.

The Problem with Asking for Salary History

Asking for salary history keep wage gaps alive, especially for women, minorities, and other marginalized groups. This is because salary history can reflect past pay gaps or unfair pay practices. If a candidate has been underpaid in the past, their salary history could become an anchor that limits their future earning potential.

For example:

• Gender Pay Gaps: Women and minorities are often paid less than their male or white counterparts for the same job. If an employer asks about salary history, the low previous pay could unintentionally justify offering them a similarly low salary, further perpetuating inequality.
• Bias in Hiring: Salary history can also reinforce unconscious bias in hiring processes. A candidate’s previous pay might influence how an employer perceives their value, regardless of the candidate’s qualifications for the job in question.

Can Employers Legally Ask for Salary History?

In many parts of the United States, the answer is no. The number of states and cities that have enacted laws banning salary history questions has been growing in recent years. These laws are a direct response to the concerns about pay inequity and the desire to ensure that workers are paid based on their skills, experience, and the market rate for the role—not their past compensation.

States Where Salary History Is Banned:

• California
• New York
• Massachusetts
• Colorado
• Oregon
• Illinois
• Washington, D.C.
• Delaware
• Maryland

Additionally, some cities, including New York City, Chicago, and Philadelphia, have enacted local bans on salary history inquiries.

Exceptions and Variations:

• Some states apply these bans to private employers only, while others extend to public sector employers as well.
• Some localities may allow salary history inquiries under specific circumstances, such as when a candidate voluntarily discloses their salary.
• Certain states, like Pennsylvania, have salary history bans only for state-level employers.

How Does This Affect You as an Employee?

If you live in a state or city with a salary history ban, you are not obligated to disclose your prior salary when asked. Employers should be focusing on your skills and the value you bring to the role, rather than your past compensation. However, if you are applying for a job in a place where salary history inquiries are still allowed, you should know your rights and how to handle these questions.

Here are some points to keep in mind:

1. Know the Law: Check whether you live in a state or city with a salary history ban. If you do, you are legally protected from being asked about your salary history.
2. What If You’re Asked Anyway?: If an employer asks about your salary history in a jurisdiction where it’s banned, politely inform them that it’s prohibited and redirect them your qualifications and salary expectation.
3. Salary Expectations: In some states, even if salary history is banned, employers may still ask about your salary expectations. This is a valid question, and you are free to share your expectations based on the role, industry standards, and your experience.
4. Negotiating Pay: If salary history is part of the negotiation process, keep in mind that the goal is to ensure fair compensation. If you have been underpaid in the past, you have the opportunity to negotiate a salary based on the market rate for your skills, experience, and the responsibilities of the new role.

What Should You Do If You’re Not Comfortable Answering?

So you don’t want to lose the job opportunity, but feel uncomfortable answering the salary history question. Here are a few options:

• Be Transparent: Politely state that you prefer not to share your salary history because you believe compensation should be based on the role and your qualifications.
• Redirect: You can steer the conversation toward your salary expectations, highlighting your value, skills, and how you can contribute to the company.
• Ask for Clarification: If you’re unsure about the question, you can ask how salary history is relevant to the hiring process and what range the employer has in mind for the position. Try not to come off as arrogant.

Final Thoughts

So, can employers ask for salary history? If you’re in a jurisdiction where these questions are banned, you don’t have to disclose your past salary, and you should not feel pressured to do so. Check with your state and locality to see if salary history questions are allowed. If salary history questions are allowed, you have the right to navigate the conversation in a way that focuses on your qualifications and the role’s market value, not just your prior earnings.

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See Also:

• How To Write A Thank You Email After An Interview
• 5 Illegal Interview Questions and How To Answer Them

This article is intended for informational purposes only. It provides general information and is not intended and should not be construed as professional advice. The author is not your attorney, accountant, financial planner or any other professional and no professional-client relationship is created. We do not represent that the information provided is accurate or up-to-date as laws and regulations are always changing. If you have an issue that requires professional help, you should contact the appropriate professional to help you on your specific set of facts. Please read the Terms and Conditions for additional information.