When Sarah, an HR manager at a growing tech startup, asked a promising job candidate about her current salary during a phone screen, she had no idea she’d just violated state law. The candidate filed a complaint, and Sarah’s company faced penalties and reputational damage—all because Sarah wasn’t aware of her state’s salary history ban. This scenario plays out more often than you might think, as a growing number of states and localities have enacted laws prohibiting employers from asking job applicants about their past compensation. Understanding where these bans exist and how to comply with them is now essential for every employer navigating the hiring process.
This article provides a comprehensive overview of salary history bans across the United States, explains why these laws exist, identifies which jurisdictions have enacted them, and offers practical guidance for ensuring your hiring practices remain compliant.
Why Salary History Bans Exist: The Pay Equity Connection
Salary history bans emerged as a legislative response to persistent wage gaps affecting women and minorities. The logic behind these laws is straightforward: when employers base compensation offers on what candidates previously earned, they perpetuate historical pay discrimination. If a woman was underpaid in her last position due to gender bias, asking about that salary and using it as a benchmark for her next offer simply carries that inequity forward into her new role.
Research supports this concern. Studies have shown that basing offers on salary history can compound pay disparities over the course of a career. A worker who starts at a lower salary due to discrimination may never catch up to peers, even when changing jobs, if each new employer simply offers a modest percentage increase over previous pay. By prohibiting salary history inquiries, legislators aim to break this cycle and encourage employers to determine compensation based on the job’s market value, the candidate’s qualifications, and the organization’s budget—not on potentially discriminatory past pay.
These laws represent a significant shift in hiring practices. For decades, asking “What’s your current salary?” or “What are your salary expectations based on your current compensation?” was standard practice. Now, employers must fundamentally rethink how they approach compensation discussions with candidates.
States and Localities with Salary History Bans
As of 2024, more than 20 states and numerous municipalities have enacted some form of salary history ban. The specific provisions vary, but most prohibit employers from asking job applicants about their compensation history, either in writing or verbally. Some laws apply only to public employers, while others cover private employers as well.
States with statewide bans include Alabama (public employers only), California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania (public employers only), Rhode Island, Vermont, Virginia, and Washington. Several of these states enacted their laws relatively recently, with the trend accelerating after Massachusetts became the first state to pass comprehensive salary history legislation in 2016.
Major cities and counties with their own salary history ordinances include New York City, Philadelphia, San Francisco, Atlanta, Chicago, Cincinnati, Kansas City (Missouri), Louisville, New Orleans, Pittsburgh, Salt Lake City, and numerous others. This patchwork of local laws creates complexity for multi-state employers who must track different requirements across jurisdictions.
The scope of these laws varies considerably. Some prohibitions apply only during the initial application and interview process but allow salary discussions once an offer has been extended. Others ban employers from considering salary history information even if the candidate volunteers it. Many laws include exceptions allowing employers to discuss salary expectations (as opposed to salary history) and to verify compensation information after an offer has been made if the candidate voluntarily provided it without prompting.
Importantly, most salary history bans do not prevent employers from discussing a candidate’s salary expectations or requirements for a new position. The distinction is critical: you cannot ask “What do you currently make?” but you generally can ask “What are your salary expectations for this role?” This allows for productive compensation conversations while avoiding the perpetuation of past pay inequities.
Practical Compliance Strategies for Employers
Complying with salary history bans requires updating multiple aspects of your hiring process. Start by auditing all employment applications, whether paper or digital, to remove any questions about current or past compensation. This includes questions about salary, wages, benefits, or other compensation from previous employers.
Train everyone involved in hiring—recruiters, hiring managers, interviewers, and HR staff—on what they can and cannot ask. Even casual conversation can create liability. For example, an interviewer making small talk might ask, “So what are you making now at your current company?” without realizing this violates the law. Role-playing exercises and clear written guidelines help prevent these inadvertent violations.
Revise your interview scripts and questions to focus on salary expectations rather than salary history. Instead of asking about past pay, ask candidates about their compensation requirements or expectations for the position you’re filling. You might say, “Based on your research and experience, what salary range are you targeting for this role?” This approach gathers the information you need for productive negotiations without running afoul of salary history bans.
Be cautious about conducting background checks or reference checks that might reveal salary information. If you use third-party screening services, ensure they understand they should not provide salary history data. When checking references, instruct your team not to ask about the candidate’s compensation at previous employers.
Consider adopting a proactive approach by including salary ranges in your job postings. Several states, including Colorado and New York, now require pay transparency in job advertisements. Even where not required, posting salary ranges demonstrates good faith, attracts candidates whose expectations align with your budget, and reduces the temptation to rely on salary history as a negotiating anchor.
Document your compensation decision-making process. If a complaint arises, you’ll want evidence showing that you determined the offered salary based on legitimate factors such as the position’s market rate, the candidate’s skills and experience, internal equity considerations, and your compensation budget—not on prohibited salary history information.
What to Do If a Candidate Volunteers Salary Information
A common question employers face is: “What if the candidate tells me their current salary without me asking?” The answer depends on your jurisdiction’s specific law. Some salary history bans prohibit employers from considering salary history information even when voluntarily provided. Others allow employers to consider and verify information that candidates offer unprompted.
The safest approach is to politely redirect the conversation. If a candidate says, “I’m currently making $75,000,” you might respond with, “I appreciate you sharing that, but we’d prefer to focus on what compensation would be appropriate for this position based on the role’s responsibilities and your qualifications. What salary range are you looking for in your next opportunity?” This keeps the conversation compliant while maintaining a positive candidate experience.
Never use salary history as the primary basis for your offer, even if volunteered. Instead, conduct market research to determine the appropriate pay range for the position, assess the candidate’s qualifications against your requirements, and make an offer that reflects these factors. If the candidate’s expectations significantly exceed your range, you can have a transparent conversation about the gap without referencing their current pay.
Compliance Checklist
- ✅ Remove all questions about salary history from job applications, both paper and electronic versions
- ✅ Train all hiring personnel—recruiters, managers, and interviewers—on salary history ban requirements in every jurisdiction where you hire
- ✅ Revise interview scripts and guidelines to replace salary history questions with questions about salary expectations
- ✅ Instruct background check providers and reference checkers not to seek or report salary history information
- ✅ Establish a documented process for determining compensation offers based on market data, job requirements, candidate qualifications, and budget—not salary history
- ✅ Consider including salary ranges in job postings to promote transparency and comply with pay transparency laws where applicable
- ✅ Create a protocol for redirecting conversations when candidates voluntarily offer salary history information
Conclusion
Salary history bans represent a fundamental shift in how employers approach compensation discussions during hiring. While these laws add complexity to the recruitment process, they serve an important purpose: breaking the cycle of pay discrimination and promoting equity in the workplace. By removing questions about past pay from your applications, training your hiring team, focusing on salary expectations rather than history, and basing offers on legitimate factors like market rates and candidate qualifications, you can navigate these requirements successfully while building a fairer, more compliant hiring process. Given the rapid evolution of these laws and the significant penalties for violations, consulting with an employment attorney familiar with the jurisdictions where you operate is a wise investment in your compliance program.
The information on WorkplaceLogic.com is for general informational purposes only and does not constitute legal advice. Employment laws vary by jurisdiction and change frequently. Always consult a qualified employment attorney for advice specific to your situation.
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