“Salary History” Bans by State

Over the years, requesting an applicant’s salary history during the hiring process has been a common practice. Companies have used the information to remove applicants with too high, and even too low, of a salary history for many reasons.

However, as pay disparity becomes a larger focus for state and federal agencies, we are seeing more and more bans on the practice of requesting salary histories.

Below are the four states within the TPM membership that have enacted laws regarding salary bans. Three of the states below prohibit the practice, while one (Colorado), passed a law that specifically allows the practice to continue.

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COLORADO

Effective Date: January 1, 2021

Employers Effected: ALL
Employers can’t ask for an applicant’s pay history. They also can’t use pay
history to set salaries. They can’t discriminate or retaliate against a
candidate who doesn’t disclose their pay history.

MICHIGAN

Effective Date: June 24, 2018

Employers Effected: Private Employers
Michigan has prohibited salary history bans in the state. Local governments may
not regulate the information that employers must request, require, or exclude
on an application for employment or during the interview process.

OREGON

Effective Date: January 1, 2021

Employers Effected: ALL
Employers may not ask about an applicants’ pay history until after an offer of
employment is extended. Employers also are prohibited from using prior
compensation to set pay, except for current employees moving to a new position
with the same employer.

WASHINGTON

Effective Date: January 1, 2021

Employers Effected: ALL
Employers may not seek pay history. They may, however, confirm that information
if the applicant voluntarily discloses it or if an offer has been extended.
Businesses with 15 or more employees must provide the minimum salary for the
position upon the applicant request and after an offer has been extended.