Employers everywhere need to take heed of salary history bans as policymakers push efforts to regulate discriminatory hiring practices in every state.
As the U.S. continues on the fast track toward workplace equality, 2019 may soon be remembered as the year of the salary history ban. Though the legislation is not yet in place in every jurisdiction, employers everywhere need to take heed of these laws as policymakers push efforts to regulate discriminatory hiring practices in every state.
How Do You Know if a Salary History Ban Affects Your Business?
Bans are currently in place for 17 states and 19 localities. Some of these laws ban employers from discriminating against hiring applicants who refuse to provide salary histories. Some laws ban employers from asking for salary history altogether. And other laws ban employers from providing salary history if asked.
There is a running list of salary history laws available online, but the variations in their requirements—and the pace at which they are being implemented in new jurisdictions—makes this question an important one that needs to be actively monitored by your legal and/or human resources departments. Any changes affecting your business also need to be communicated quickly and clearly to everyone involved in your hiring processes.
What if the Salary History Ban isn’t in Effect in My Location?
In a post for Forbes, Aram Lulla, General Manager of Human Resources Practice at Lucas Group and member of the Forbes Human Resources Council, stresses the benefits of compliance with salary history bans regardless of whether or not a law is already in place for a particular hiring manager’s location of the business.
“Employers who lead the charge gain a critical first-mover advantage, benefitting from transparent salary negotiations,” Lulla says. “This is a huge employer brand boost that helps to make your business an employer of choice.”
“You do not need to benchmark the pay against what a candidate previously made,” he continues. “What would you pay someone who has the desired skills, experience, and education, and also aligns with your company culture and fits with your team? What does your current budget allow for this position? What is the current market rate for similar positions at your competitors? Is your expected salary range in line with what the market demands? What other components will be part of the total compensation package? These questions can help you set expectations and zero in on an appropriate salary range.”
Additionally, a salary history ban may not be in place in the jurisdiction over an employer’s headquarters, but there could be one in place for a branch location or in the place of residence for a potential employee who will be working remotely.
Now that You’ve Decided to Hire for Skills Over Savings…
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