An increasing number of states and localities have adopted salary history bans, outlawing the once-common practice and compelling employers to update how they evaluate job applicants. We explain how this affects background check services for employers and more.
In the past, it was common to ask job applicants to disclose their previous salary and wages—and for employers to make hiring and pay decisions based on that information. As part of a nationwide effort to secure equal pay for working women, many areas now forbid questions about this topic. Equal pay advocates argue that asking about salary history creates false assumptions and biases about the worker’s value, in addition to perpetuating wage disparities for women and minorities.
While no federal legislation has been passed yet, there are currently 21 state-wide bans on asking about salary history, as well as bans in counties, cities, and other localities. Some of these bans impact all employers, while others have more limited scopes, such as only impacting state agencies. The experts here at CredentialCheck are available to help employers navigate the regulations that affect them to ward off costly mistakes.
While credit check services for employers do not directly report salaries, they can shed revealing information about a candidate’s previous pay via reporting on balances. Many salary history bans also forbid employers from acting based on this information. To avoid fines and other legal consequences, employers must be up to date on the latest regulations in the areas they operate. We assist businesses and organizations through their compliant screening practices.
