Salary History Disclosure
During your job search, someone may ask you for your salary history. This is a tough position to be in, especially if you are hoping for a significant pay increase over your last job. Revealing your salary history could compromise your position in pay negotiations. It’s important to respond in a way that maintains your negotiating position without hurting your chance at the job. For more information about disclosing your salary, read below.
Employers tend to use your past salary to gauge your market value. It also gives them a sense of what salary you may be expecting.
Yes, in most states and cities, but this is quickly changing. The level of restrictions varies from state to state. States and localities that have passed laws on salary history. The laws are outlined in a question below.
No. Salary history is personal information that you may choose to withhold from your employer. However, while there is no legal obligation to disclose your previous salary, there is no way to be sure how a particular employer may react. Declining to disclose your previous salary could result in losing the job opportunity.
Many people (especially minorities and women) choose not to disclose their previous salary because it may limit how much the company offers them for a new job. If a person is underpaid in a previous job, disclosing their previous salary to a new potential employer will likely result in being underpaid in their new job as well.
Basing salaries on a person’s previous pay rate perpetuates the pay gap between men and women and minorities. As noted above, many states are moving towards banning salary history questions altogether.
Employers are urged to provide this information in job postings. Asking for a salary range upfront can avoid wasting the company’s time and yours and reminds a company that it is important to provide transparency of the fair market rate for the role that they are trying to fill.
A polite way to ask for salary range would be by saying:
- “I want to be respectful of your time. Is there a specific salary range for this position?”
- “I want to be respectful of your time. There is a specific salary range I’m looking for. Can we talk about that upfront?”
- “If you don’t mind me asking, what is the salary range for this role?”
Since it is still standard practice for many employers to not disclose a salary range up front, you may be met with resistance. There is no way to be sure of how a particular employer may react to this question. There is always a risk that it could result in losing the job opportunity. However, as more employers begin to realize the benefit of providing salary information up front, this will become less of a problem.
If it’s not a required field on an online form, or if it is a physical form, leave it blank. If it is a required field on an online form, enter $0 or $1. It will be clear to employers that you do not want to answer the question.
Enter the interview with all the knowledge you can about the salary range for the position. Visit sites like Payscale.com, Glassdoor.com, Indeed.com, and Salary.com to get more information. The research will allow you to know in advance your desired salary range and allows you to be realistic in your expectations. You will also have a leg up in the interview if the employer seems to give a lower number than the fair market value for the position.
You can also ask for the compensation range of the position you applied for, before the interview process, during a phone screen, or e-mail exchange. Be prepared for this question to lead to being asked what your expectations are. You can respond by saying “The range sounds in line with my expectations.”
No. You may be tempted to exaggerate during salary negotiations, but it would be in your best interest not to. Headhunters and human resources professionals are well versed in this area and can catch you in your lie. If you lie, you will lose credibility, lose the job you are applying for and damage your professional reputation.
- “I prefer not to tell you my past salary because I’d like to have an honest, fair negation based on what I can do to make your business more successful.”
- “I’d be happy to talk about that at the appropriate time. Why don’t you tell me more about …?”
- “Before we get to that, let me make sure I’m even in your ballpark. What is the salary range for this position?”
- “I’m not comfortable discussing salary at this stage. Perhaps we can do so when we meet in person?”
- “My current employer does not allow me to discuss the terms of my employment.”
- “For a person with the skills and experience you want, I’d expect that this position would not pay less than ‘X.’ Correct?”
If your potential employer asks many times, and none of the above answers are working for you, you can always decide to share your salary information. If you know your last job underpaid you from looking at your fair market value, don’t hesitate to bring that up to your potential employer.
Alabama: Also known as the Clarke-Figures Equal Pay Act, Alabama’s salary history ban prohibits all employers from refusing to hire, promote, or employ an applicant because the applicant does not provide their salary history. This Act also prohibits an employer paying a lower rate of an employee of a different race or sex for the same work.
California: According to California Labor Code Section 432.3 employers are prohibited from using salary history in their employment decisions for an applicant. The employer cannot seek salary history information about an applicant through writing personally, or any other means. Applicants may, “upon reasonable request” request pay scale information. This applies to all employers.
Colorado: Colorado’s salary history ban law, “Equal Pay for Equal Work Act”, prohibits wage discrimination and covers all employers regardless of the size. It prohibits employers from seeking an applicant’s salary history when determining how much the applicant would be paid.
Connecticut: According to Connecticut law, employers cannot:
- prohibit employees from discussing their wages with co-workers,
- prohibit an employee from requesting information about the wages of another employee,
- require employees to sign anything that takes away rights to discuss their salary with other employees, require employees to sign a waiver denying their right to inquire about the wages of another employee, or
- bring in a direct or third party to inquire about an applicant’s salary history.
“Employer” means any individual, corporation, limited liability company, firm, partnership, voluntary association, joint stock association, the state and any political subdivision thereof and any public corporation within the state using the services of one or more employees for pay; (2) “Employee” means any individual employed or permitted to work by an employer.
Delaware: Delaware law makes it unlawful for an employer or their agent to screen applicants for employment based on salary history and seeking compensation history from an applicant’s former employer. This applies to all employers.
District of Columbia: According to D.C. law, government agencies may not ask applicants about their salary history unless the applicant once the offer is made by an employer.
Hawaii: Hawaii’s Equal Pay Act prohibits employers from asking applicants about their compensation from a previous job, and they cannot use past salary to determine the employee’s pay. This law also gives employees the right to discuss their salary with coworkers without retaliation. The law applies to all employers.
Illinois: Illinois law prohibits employers from asking about pay history, benefits, or other forms of compensation. Employees who are full-time, part-time, temporary, or permanent are covered under this law. Employers also may not use recruiters or third parties to determine the candidate’s salary history. The law does not apply if the applicant is internal or if the salary history is a public record. Salary history may be disclosed voluntarily by the applicant. All employers are covered by the law.
Maine: According to Maine law, employers may not seek information about a prospective employee’s pay history until after a job offer has been negotiated. The law applies to all employers.
Maryland: Employers may not seek pay history, but they may confirm wage history voluntarily provided by an applicant after an initial offer of employment, including an offer of compensation, is made. Upon request, employers must provide an applicant with the wage range of the position for which the applicant applied. See the law for more information. The law applies to all employers.
Massachusetts: All Massachusetts law, employers cannot request salary history information. They can, however, confirm prior history if volunteered by the applicant or if an offer has been extended. The law applies to all employers. See the law for more information.
Michigan. Michigan’s salary history disclosure law prohibits employers from asking about an applicant’s compensation history. However, state departments are prohibited from asking about salary history unless they make a conditional offer of employment. See the law for more information.
Minnesota: Employers may not seek pay history. The prohibition does not apply if an applicant’s pay history is a matter of public record — unless employers seek access to those public records with the intent of obtaining pay history for the purpose of determining wages, salary, earnings, benefits or other compensation for that applicant. See the law for more information.
Missouri: All employers with six or more employees are not allowed to ask about salary history or use it when determining salary or other compensation. Employers also cannot retaliate against employees for not disclosing their salary to the employer. See the law for more information.
Nevada: Employers may not seek pay history, nor may they refuse to hire, interview, promote or employ applicants who do not provide pay history. Employers must provide a wage or salary range to applicants who have completed interviews for positions, and they must provide the wage or salary range or rate in certain cases of a promotion or transfer. Employers may ask applicants about their pay expectations. The law applies to all employers. See the law for more information.
New Jersey: Employers may not screen applicants based on their pay history. Employers may not require that an applicant’s prior wages, salaries or benefits meet minimum or maximum criteria. If an applicant voluntarily, without employer prompting or coercion, discloses pay history, an employer may verify the applicant’s pay history and may also consider pay history in determining the applicant’s salary, benefits and other compensation. After an offer of employment that includes an explanation of the overall compensation package has been made to the applicant, an employer may request the applicant provide the employer a written authorization to confirm pay history. The law applies to all employers. See the law for more information.
New York: Employers may not seek pay history. An employer may only confirm pay history if, at the time an offer of employment is made, applicants or current employees respond to the offer by providing pay history to support a wage or salary higher than that offered by the employer. All employers are covered by the law. See the law for more information.
North Carolina: State agencies may not request pay history information from applicants and may not rely upon previously obtained prior salary information in setting pay. See the Executive Order for more information.
Oregon: Any person employing one or more employees may not ask about an applicant’s pay history until after an offer of employment is extended. Employers also are prohibited from using prior compensation to set pay, except for current employees moving to a new position with the same employer. See Oregon’s website for more information.
Pennsylvania: State agencies cannot ask about pay history at any stage of the hiring process.
Rhode Island: Employers may not seek pay history, nor can they rely on pay history when considering an applicant for employment or determining pay. They may, however, confirm and rely on pay history after an employment offer is made to support a higher wage than initially offered. Employers also must provide a wage range for a given position. The law applies to all employers.
Vermont: Under Vermont law, employers may not request applicants’ pay history. If that information is volunteered, employers may only confirm it after a job offer has been made. The law applies to all employers. See the law for more information.
Virginia: Virginia law pa prospective employer with 25 employees or more from (i) requiring as a condition of employment that a prospective employee provide or disclose the prospective employee’s wage or salary history, (ii) attempting to obtain the wage or salary history of a prospective employee from the prospective employee’s current or former employers, (iii) requesting a prospective employee to complete an application for employment that includes a question inquiring about the prospective employee’s wage or salary history, or (iv) asking a prospective employee in an employment interview any question intended to obtain information about the prospective employee’s wage or salary history. See the law for more information.
Washington: Employers may not seek pay history. They may, however, confirm that information if the applicant voluntarily discloses it or if an offer has been extended. Employers with 15 or more employees, upon request of the applicant and after extending an offer to the applicant, must provide information about the minimum salary for the position for which the applicant is applying. See the law for more information.
Wisconsin: State departments and agencies are prohibited from asking for salary history. See the law for more information.