Salary bans

The issue of pay discrimination and the related effects on an individual’s ability to advance their career has resulted in the implementation of salary bans by a number of state and local governments. See below for a list of jurisdictions and details of the salary legislation.

This movement is growing and salary bans are increasingly implemented that prohibit employers from requesting salary history information from job applicants. In addition to the issue of fairness, requesting salary information can lead to issues of discrimination when individuals in the workforce with the same responsibilities are paid at a different rate. Fines, disruption of business operations and legal fees resulting from a policy that fails to comply can place a heavy burden on employers.

Not all salary bans are the same and go beyond questions relating to salary. It can be complicated and it is important to understand the language in the ban in your jurisdiction. Many jurisdictions prohibit an employer from determining compensation based on the candidate’s past earnings. Some jurisdictions prohibit an employer from taking disciplinary action if employees discuss pay with coworkers.

If your company or organization is subject to a salary ban, be sure your background vendor is aware you are located in one of these jurisdictions. Most bans also prohibit the background vendor from reporting salary information with the employment verification.

Please click for a list of national salary ban jurisdictions: