Does your company ask applicants for salary history during the hiring process? If so, recent legislation may open your organization up to legal risk.

In groundbreaking efforts to close current wage gaps among women, minorities and other protected classes, multiple jurisdictions have enacted laws prohibiting employers from asking about applicants’ salaries during the hiring process. Additionally, some laws specify salary history provided by previous employers should not be taken into consideration in the employment process, given their potential to further perpetuate low salaries and wage gaps.

Historically, and according to statistics released by the Pew Research Center in mid-2016, these wage gaps persist in the U.S. despite minimal progress throughout the years. However, in places like Philadelphia and Massachusetts, lawmakers seem hopeful recently-enacted laws will serve as a model for other states. And, other lawmakers are following suit and taking legislative action towards the goal of greater employment compensation equality.

Several states such as California and New York are already considering similar legislation. Additionally, in September of last year, lawmakers on Capitol Hill introduced the H.R.6030 – Pay Equity for All Act of 2016, which would make it illegal to ask job candidates for salary history information during the interview and salary negotiation processes.

With laws like these sweeping the nation, it is important for employers to understand how to implement changes to hiring processes to ensure legally-complaint processes.  It is equally-important to remain up-to-date on current and pending legislation, and to incorporate changes as they arise. From removing salary-related questions on applications and job listings, to abstaining from asking questions about salary during interviews, it is the responsibility of employers to know what is legally-acceptable.

Employers are solely responsible for ensuring they are in compliance with all federal, state and local laws such as those mentioned above. For more information on these laws, and the effect on your organization’s policies and practices, please consult your legal counsel. A-Check Global provides legal and legislative content for general information purposes only.

A-Check Global strives to provide resources regarding current and pending local, statewide and federal laws which may impact employment screening. For more information on how current or pending legislation may affect your employment screening programs, please contact A-Check Global through our contact page, or by phone at 877-345-2021.