Salary History Bans – Know the Limitations

Many states have enacted some form of salary history ban, prohibiting employers from asking applicants about their current or past salaries, benefits or other compensation. In Michigan, however, salary history bans are prohibited. Employers there are still permitted to ask candidates’ previous and current salary, benefits and other compensation. Laws are different in state offices. But other states recognize the need to end the cycle of pay discrimination and a few also prohibit an employer from relying on an applicant’s pay history to set compensation if discovered or volunteered. In others, employers are prohibited from taking disciplinary action against employees who discuss pay with coworkers. Employers should consider having the salary range determined prior to beginning the recruiting process for a specific position. As candidates are screened, the salary range should be shared with the candidate to determine whether it fits into his or her requirement.

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