Asking Job Candidates What They Earn Could Cost You

Be aware of state & local laws limiting wage, salary inquiries 

Did you know that you may no longer be allowed to ask job candidates about their salary or pay history? Many cities and states have passed laws limiting the ability of private employers to use information about a person’s past wages or current compensation in hiring or payment decisions. As private employers, Christian churches, schools, and nonprofit ministries are among those affected by these restrictions.

Even if your ministry isn’t affected today, it could be in the future. It’s a good idea to keep an eye on employment trends and examine your hiring practices regularly. This can help your organization stay in step with evolving laws.

Why can’t we ask about past pay?

Laws banning employers from seeking information about a person’s pay history aim to promote pay equity for people who do similar work. Certain groups of people, such as women and racial minorities, have historically experienced wage discrimination in the workplace. If employers base compensation decisions on a person’s past wages, it allows this cycle to continue. That’s the general theory behind these measures, which vary from state to state. 

What can we ask? 

The laws do allow employers to ask about a job applicant’s wage expectations, or how much money a person would like to earn for a given position. Some states also allow employers to consider a person’s salary history, under certain conditions. 

Under New Jersey’s new law, which takes effect in 2020, job applicants may voluntarily disclose or verify their salary history, as long as it’s not prompted or coerced. Private employers in that state may also seek written permission to confirm someone’s salary history, but only if they have first extended an employment offer explaining the applicant’s compensation package.*

Which communities are affected? 

An increasing number of states, cities, and counties have passed laws prohibiting private employers from making wage inquiries during the hiring process. The list is continually changing, so it's important to keep an eye on legislation in your state. HR Dive is one of several organizations that maintains an updated list on its website and could serve as a reference for your ministry.

Please note: Many additional localities bar government employers from asking about a person’s salary history. If your ministry partners with a government organization, it’s a good idea to ask a local attorney whether this measure applies to you.

Where can we learn more? 

There are a number of places you can turn for help in keeping your ministry in step with current employment laws, including your insurance company. Here are some action steps to consider: 

• Call your insurance agent. Ask what risk management information your insurance company can provide. 
• Visit your state’s employment website. Learn what your state’s agency is telling private employers. Find your state's labor office.
• Review your organization’s job application. Look for questions that should be revised or removed. Make a habit of reviewing it regularly, so it doesn’t get out of date.
• Meet with HR. If you’re not responsible for hiring, meet with your HR person. Make sure that the people interviewing job applicants understand what they’re allowed to ask. 
• Talk to an attorney. Ask a locally licensed attorney to review your employment procedures and help keep you compliant with current practices. 

It’s hard to know everything, so enlist the help of skilled people to help your organization stay up to date and on the right side of the law.

Updated October 1, 2019
Appeared in Brotherhood Mutual's Safety News September 2019

* “New Jersey Becomes the Latest Jurisdiction to Enact Ban on Salary History Inquiries,” July 26, 2019. The National Law Review. https://www.natlawreview.com/article/new-jersey-becomes-latest-jurisdiction-to-enact-ban-salary-history-inquiries. Accessed August 28, 2019