It’s the job interview question you’d love to dodge: What’s your current or most recent salary? A low figure could limit your starting pay. A high number might make you seem expensive.
As USA Today reports, several states and cities are now banning the question as part of efforts to ensure pay equity for women, but some companies say the new laws represent yet another intrusion into their businesses.
This week, the city of Philadelphia announced it would hold off on enforcing legislation banning the salary history question until a federal judge ruled on a petition to block it from the Chamber of Commerce for Greater Philadelphia. A federal court already had temporarily stayed the law, which was to take effect May 23.
Philadelphia joins New York City and Massachusetts, where legislation was passed this month and last year, respectively, in barring employers from asking job candidates about their salary history or benefits. At least eight other states are considering similar measures—Illinois, Maine, Maryland, New Jersey, New York, Pennsylvania, Rhode Island and Vermont, according to law firm Fisher & Phillips.
The bills are aimed at closing a longstanding gender-based pay gap that, according to the Census Bureau, has women earning about 80 cents for every dollar earned by men. By basing future salaries on previous wages, employers can perpetuate the earnings divide, advocates for women say.
More broadly, compensation experts say the measures also address the fundamental unfairness of shackling a new employee to a prior salary.
“Our advice to organizations is that they should price the position, not price the person,” says Lydia Frank, vice president of Payscale, a compensation consulting firm. “You’re trying to fill a certain role. What you should be doing is understanding the market rate for that role.”
But Cheryl Behymer, a labor lawyer for Fisher & Phillips who represents employers, says many companies use salary history to set pay and manage their costs.
“It’s hard to figure out how to pay somebody a fair amount,” she says. “You’re looking at getting the best employee you can but … there’s nothing wrong with trying to save the company money.”
