Two States Go Against the Grain By Prohibiting Salary History Bans
By now, employers generally are aware that a growing number of states and municipalities are passing bans prohibiting pre-employment inquiries into an applicant’s salary history. This trend is part of a growing effort in the United States to reduce the pay gaps that may result from discrimination. In contrast, Michigan and Wisconsin became the first states to enact legislation barring localities from implementing legislation that would prohibit pre-hire salary history inquiries.
While employers in Michigan and Wisconsin may welcome legislative relief, New York City, and states including California, Delaware, Massachusetts, and Oregon have taken an opposite approach and passed legislation banning salary history inquiries. Employers should check their policies to confirm that they are in compliance with applicable laws and assess whether those responsible for hiring are familiar with all applicable laws.