Asking a job candidate for current or former wages has historically been a key part of recruiters’ candidate screening process. However,, as part of broader efforts aimed at closing the pay gap between men and women, many states have introduced measures to restrict employers (and their search agents) the ability to ask job candidates about their pay history during the hiring process. David Nosal and Paula Elmore, Managing Partners at NGS Global, provide an overview of the current status of this legislation across the U.S., what employers and recruiters can or cannot ask candidates; what sanctions apply if employers fail to comply with the rules; and finally, what can recruiters do to prepare for the challenges the restrictions will pose.
However, as part of broader efforts aimed at closing the pay gap between men and women, the federal government, as well as certain states and cities, have introduced measures to restrict employers (and their search agents) the ability to ask job candidates about their pay history during the hiring process. The concern that inspired the new legislation is that by basing future salaries on previous wages, employers may unintentionally perpetuate the earnings divide between men and women. According to a 2016 study conducted by the Census Bureau, women earn about 80 cents for every dollar earned by men.1 Theoretically, by eliminating salary disclosure during the screening and interviewing process, the emphasis will be on the value of a position rather than the value of an individual based on their prior earnings. Thus, women should realize parity in pay with men. In this paper, David Nosal and Paula Elmore, Managing Partners at NGS Global, provide an overview of the current status of this legislation across the U.S., what employers and recruiters can or cannot ask candidates; what sanctions apply if employers fail to comply with the rules; and finally, what can recruiters do to prepare for the challenges the restrictions will pose.
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