Job seekers in Massachusetts welcomed a new law in August 2016 that makes it illegal for employers to ask applicants to provide a detailed salary history before offering them a position. Although some legislators want to extend this law across the nation, no other states so far have passed regulations or ordinances that would prevent companies or hiring managers from soliciting such information.
Unless you actually live in Massachusetts, it's not illegal for an employer to ask for your salary history. However, you don't have to provide this information. In fact, it's usually in your best interests to keep quiet about your current and previous pay packets. When an employer asks about your salary history, a good strategy is to talk about how much you expect to earn in the new role rather than disclosing how much you are currently being paid.
According to Forbes, employers often use salary history information to justify paying women and minorities lower wages. These groups typically earn less than Caucasian males, which may prompt hiring managers at some companies to offer job seekers from these demographics lower starting salaries. Making salary history information available to employers can perpetuate low wages for these disadvantaged groups.
Some employers claim they need salary history to help them assess applicants' suitability for a job. This is a poor excuse for demanding this private and sensitive information. Recruiters should be able to assess applicants based on their resume, cover letter and interview performance.
If a recruiter insists on knowing your salary history, state very clearly how much you expect to earn in the new role and give reasons why you think you deserve an increase. Perhaps your previous job involved working at a startup which couldn't afford to pay you more than a basic salary. Maybe you took a low-paying job as a short-term stop-gap while you look for a role that allows you to use your skills. Whatever the reason for your low salary, make it clear to the employer that you expect your new job to come with a significant pay rise.
Avoid the temptation to lie about your salary history. Although this is something many frustrated job seekers consider, it's generally not a good idea. If the employer finds out that you lied, you could lose their trust. Instead, try to change the focus of the discussion to what you think you're worth rather than the salaries you have been paid in the past.
Although most states allow employers to ask for salary history, it can be a good idea to try to avoid handing over this information. During an interview, try to keep the focus of the discussion on your salary expectations, not your salary history.
Photo courtesy of Stuart Miles at FreeDigitalPhotos.net
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