[VIDEO] New Salary History Bans: Is Your City Next?

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More cities and states are passing salary inquiry bans and wage equity laws preventing employers from asking about or using previous pay as a factor in determining salary. In this brief video, GoodHire’s legal expert explains how these laws impact employers, what you should to know to stay in compliance, and how GoodHire’s optimized screening process reduces your risk.

As more cities and states pass salary inquiry bans, or wage equity laws, employers need to be aware of new regulations so they can stay compliant.

In this short video, GoodHire’s General Counsel, Elizabeth McLean, explains how these laws impact employers, and how GoodHire monitors the legal landscape for you and optimizes our screening process to mitigate your risk of noncompliance. 

Watch The Video

Watch this short video to learn about new salary history bans.

Video Transcript

Well, it took a year and a half, but the courts have spoken. The 3rd Circuit announced this week that Philadelphia’s salary history law, the Wage Equity Ordinance, is indeed constitutional. What this means is that employers in Philly can’t ask potential employees about their previous wage history, nor can they rely on candidates’ previous salaries to determine the pay for the job for which they’re applying. 

This is just the latest in a string of cities and states passing a salary inquiry ban. New York City, Cincinnati, San Francisco, and others have some form of prohibition on the books that prevents employers from asking about or using previous pay as a factor in determining current salary.

It’s clear that wage equity laws aren’t going anywhere and more jurisdictions are hopping on the bandwagon. And at GoodHire, we monitor these trends and optimize our screening process to mitigate your risk of noncompliance. You can feel safe that you’re complying with these laws when you order background checks from GoodHire. We do not include salary history in our credit reports, employment verifications, or any other search, preventing you from making an unintended inquiry that could put you in violation of the law. 

If you have questions about screening compliance trends, feel free to reach out. We’re here to provide you accurate, fast reports that keep you compliant. 

GoodHire’s compliance expertise is unparalleled. Find out how we can help you manage a compliant employment screening program. LEARN MORE.

Disclaimer

The resources provided here are for educational purposes only and do not constitute legal advice. We advise you to consult your own counsel if you have legal questions related to your specific practices and compliance with applicable laws.


About the Author

As GoodHire’s managing editor, Sara Korolevich produces educational resources for employers on a variety of employment screening topics, including compliance and screening best practices, and writes about GoodHire’s company and product news. Sara’s experience stems from 20+ years working as a B2C and B2B PR and communications professional.

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