Can an Employer Ask for My Salary History in California?

In California, employers are prohibited from asking job applicants about their salary history, a rule established to promote fair pay practices and reduce wage disparities. This article titled “Can an Employer Ask for My Salary History in California?” examines the implications of this law, which has been in effect since 2018 under Assembly Bill 168 (AB 168). Employers cannot inquire about an applicant’s past wages, either verbally or in writing, nor can they use such information to determine employment offers or starting salaries. However, if an applicant voluntarily discloses their salary history without being prompted, employers may consider it—but with caution. This regulation is part of California’s broader effort to ensure pay equity by focusing on qualifications and job requirements rather than past earnings.

What Does the Law Say About Salary History Inquiries?

California’s salary history ban, codified under Labor Code Section 432.3, explicitly prohibits employers from:

• Asking job applicants about their current or previous salaries.
• Using salary history as a factor in deciding whether to hire a candidate or what salary to offer.
• Seeking salary history information through agents, such as recruiters or background checks.

The law applies to all employers in California, including private companies, public entities, and state agencies. Additionally, San Francisco has its own ordinance that reinforces these restrictions and adds further protections.

Why Was the Law Enacted?

The salary history ban was introduced to address systemic pay inequities that disproportionately affect women and minorities. By preventing employers from basing compensation decisions on prior earnings, the law aims to:

• Reduce wage gaps caused by historical pay disparities.
• Ensure that compensation is determined by qualifications, skills, and market conditions.
• Promote transparency and fairness in hiring practices.

What Are Employers Allowed to Ask?

While employers are prohibited from asking about salary history, they are allowed to:

• Ask About Salary Expectations: Employers can inquire about the applicant’s desired compensation for the position.
• Provide Pay Scales Upon Request: Under Senate Bill 1162 (SB 1162), employers with 15 or more employees must disclose the pay scale for a position if an applicant requests it.

What Happens If You Voluntarily Disclose Your Salary History?

If an applicant voluntarily shares their salary history without being prompted by the employer, the employer may consider this information when determining compensation. However, caution is advised because applicants may later claim they felt pressured into disclosing this information. To avoid potential disputes, employers should document that the disclosure was truly voluntary.

How Does This Law Benefit Job Applicants?

The salary history ban provides several advantages for job seekers:

• Fairer Starting Salaries: By focusing on qualifications rather than past earnings, applicants have a better chance of receiving offers aligned with market rates.
• Reduced Bias: The law minimizes the risk of perpetuating historical pay inequities.
• Transparency: Applicants can request pay scales for positions to better understand compensation expectations.

How Should Employers Ensure Compliance?

Employers must take proactive steps to comply with California’s salary history laws:

1. Update Hiring Policies: Remove any questions about salary history from job applications, interview scripts, and background check processes.
2. Train Hiring Teams: Educate recruiters and hiring managers on what they can and cannot ask during interviews.
3. Provide Pay Scales: Be prepared to share pay scale information upon request from applicants or employees.
4. Document Voluntary Disclosures: If an applicant voluntarily shares their salary history, document the interaction to avoid potential legal challenges.