Can we legally ask about salary history during the hiring process?

For many years, employers routinely asked job applicants about their previous compensation as part of the hiring process. However, salary history bans have become increasingly common across the United States as lawmakers seek to address pay equity concerns and reduce wage disparities.

Today, whether an employer can ask about salary history depends largely on where the position is located. Employers should understand applicable state and local laws before including salary history questions on applications or discussing prior compensation during interviews.

What Is Salary History?

Salary history refers to information about an applicant's previous compensation, including:

• Base salary
• Hourly wages
• Bonuses
• Commissions
• Incentive compensation
• Benefits or other forms of remuneration

Historically, employers used salary history information to determine compensation offers. Critics argued that this practice could perpetuate existing wage gaps by basing future pay on potentially inequitable past compensation.

Are Salary History Questions Legal?

The answer depends on the jurisdiction.

Many states and local governments have enacted laws that prohibit employers from:

• Asking applicants about prior compensation
• Requiring salary history disclosures
• Screening applicants based on salary history
• Using salary history to determine compensation offers

Other locations may still allow salary history inquiries, while some have limited restrictions.

Because requirements vary significantly, employers should review applicable state and local laws before implementing recruiting practices.

Why Do Salary History Bans Exist?

Salary history bans are intended to promote pay equity.

If an applicant was underpaid in a previous role, basing future compensation on prior earnings can perpetuate wage disparities throughout that individual's career.

By focusing on job responsibilities, qualifications, experience, and market rates instead of compensation history, employers can make more objective and equitable pay decisions.

What Can Employers Ask Instead?

Even where salary history questions are prohibited, employers may often discuss:

• Salary expectations
• Desired compensation range
• Minimum compensation requirements
• Whether compensation expectations align with the budgeted range

For example, an employer may ask:

"What salary range are you seeking for your next opportunity?"

This approach allows employers to determine whether compensation expectations align without requesting prohibited salary history information.

What About Voluntary Disclosures?

In some jurisdictions, applicants may voluntarily disclose salary history information without being prompted.

When this occurs, employers may be permitted to consider the information. However, rules vary by location, and employers should verify compliance before relying on voluntarily disclosed compensation details.

Hiring managers should also avoid asking follow-up questions that could appear to circumvent salary history restrictions.

Best Practices for Employers

Employers can reduce compliance risks by implementing consistent hiring practices.

Recommended best practices include:

Review Employment Applications

Remove salary history questions from applications if they are prohibited in jurisdictions where you hire.

Train Hiring Managers

Interviewers should understand which compensation-related questions are permissible and which may create compliance concerns.

Establish Compensation Ranges

Developing salary ranges before recruiting begins can help support consistent and equitable compensation decisions.

Focus on Job-Related Factors

Compensation decisions should be based on factors such as:

• Experience
• Education
• Skills
• Certifications
• Market conditions
• Internal equity

Document Compensation Decisions

Maintaining records of how compensation offers are determined can help demonstrate consistency and support compliance efforts.

Potential Risks of Noncompliance

Violations of salary history laws may expose employers to:

• Government investigations
• Civil penalties
• Discrimination claims
• Reputational harm
• Increased legal costs

Even well-intentioned questions can create risk if hiring managers are unfamiliar with applicable requirements.

Conclusion

Salary history laws continue to evolve across the United States. Employers should avoid assuming that hiring practices used in one location are permissible everywhere.

By focusing on qualifications, market data, and compensation expectations rather than prior earnings, organizations can support pay equity, reduce legal risk, and make more informed hiring decisions.

Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Employers should consult qualified legal counsel regarding specific compliance obligations.