Many U.S. states, including California, Colorado, New York, and Maryland, have passed laws banning employers from asking about an applicant’s salary history. By 2025, states such as Massachusetts, Illinois, and Minnesota will also implement these bans to promote pay equity.

Why the shift? Salary history bans are designed to close persistent wage gaps and prevent past salary levels from perpetuating pay inequities. Instead of relying on what an applicant has earned in the past, many companies are required to post salary ranges in job listings, ensuring transparency from the outset. This approach encourages candidates to assess roles based on fair compensation and growth opportunities rather than what they might have been paid before.

For managers and HR professionals, implementing policies that align with these laws not only supports fairness but also improves your company’s brand and competitiveness in the job market. Posting pay ranges creates a level playing field, showing candidates that your organization values transparency and equitable pay practices. When the pay range is clear, managers don’t need to ask salary history questions because the compensation framework speaks for itself.

Taking steps to implement salary transparency isn’t just about compliance; it’s about building a culture that values and practices equity.

For additional guidance on building fair and transparent compensation practices or implementing salary history ban policies, contact us to learn more!