Is It Legal for Employers to Ask for Salary History Information?

Employers have the right to inquire about an applicant's salary history, which may play a role in assessing their market value. However, the legality of such inquiries can vary by region, and there are ways to navigate these discussions while protecting your interests.

The Legal Landscape

In the United States, it is generally legal for employers to ask about an applicant's salary history. Federal law does not prohibit this practice, but individual states and localities may have different regulations. It is important for job seekers to familiarize themselves with the specific laws in their area. If you are applying in a state or city where laws prohibit employers from asking about salary history, it is advisable not to disclose this information.

Why Employers Ask About Salary History

Employers often ask for salary history information to gauge a candidate's market value and to help determine an appropriate starting salary. This information can also help them compare candidates and make informed hiring decisions. However, many argue that salary history can perpetuate pay disparities and should be used cautiously.

Ethical Considerations and Tactics

While it is legal, it is not always necessary to disclose past salary history. There are polite ways to handle this situation. You can respond with:

My previous work experience and salary may not reflect my current market value. Let's focus on the skills and experience I can bring to your organization. We can discuss compensation from there.

Alternatively, you can simply state:

I prefer not to discuss my previous salary as it is confidential. Let's focus on what I can contribute to this role.

In some cases, you can even say:

My salary information is confidential, and I would prefer not to disclose it.

It is important to remember that employers typically verify salary information through background checks or negotiations at a later stage in the hiring process. Disclosing salary information early in the interview process can sometimes affect the fairness of the negotiation.

Actions and Recommendations

Here are a few recommendations for job seekers:

Research the laws and regulations in your state regarding salary history. Be prepared to discuss your skills, qualifications, and value addition to the organization. Address any salary and compensation concerns in the final stages of the interview process. Avoid disclosing salary history early in the interview unless asked directly. Understand that salary history may not be the final determining factor in a job offer.

Employment verification and salary negotiation are critical phases of the hiring process. It is important to approach them with careful consideration and preparation. By understanding your rights, you can better navigate these discussions and advocate for fair compensation.