Heard It On The Hotline: Can We Ask Applicants About Their Salary History?

January 07, 2021
Publication
MRA Edge
Recruiting & Hiring
Read time: 2 mins

Q: Is it true that there is legislation that prohibits employers from asking applicants and candidates about their salary history? Our employment application includes a question asking how much a person currently makes. Do we need to remove this from our application?

A: Many states and municipalities have passed laws that prohibit employers from asking applicants about their salary history during the recruitment process. Supporters of the laws believe when employers ask candidates about their past earnings, this information will be used when establishing salary offers in the new role. If the candidate was underpaid due to pay gaps that exist for women and minorities, the cycle of pay discrimination will continue.

Of the four states where the majority of MRA’s members are located (WI, MN, IA, and IL), Illinois passed salary history ban legislation in 2019. Illinois employers should modify their job applications to remove all questions regarding prior pay and benefits. In addition, recruiting and hiring managers should refrain from asking about salary history. Employers who are not governed by salary ban legislation may adopt similar practices depending on their company culture, philosophy around total rewards, pay equity, and pay transparency. Similarly, multi-state employers or employers with remote workers may also opt to adopt such practices.

MRA’s HR Hotline Advisors are here to research and assist employers with questions. Call us at 866.474.6854 or email at [email protected].

Source: MRA - The Management Association