Are Potential Employers Allowed to Ask Your Previous Salary?

When applying for a new job, potential employers may inquire about your previous salary. However, the legality of this practice can vary from one state or jurisdiction to another. In this article, we will explore when and how employers can ask about your past salary, the implications of sharing that information, and best practices for navigating such questions.

Legal Considerations

The legality of asking about your previous salary depends on the state or local laws you are in. As of 2020, New York prohibits employers from inquiring about an applicant's salary history. This law aims to prevent pay discrimination and promote equal pay for equal work. However, the laws may differ in other states and regions.

Local ordinances, employment regulations, and anti-discrimination laws govern these practices. If you are unsure about the legal stance in your area, it's advisable to consult an attorney or the relevant labor department.

Employer Practices

Many large companies have stopped asking about previous salaries. Instead, they may offer a standard starting salary for the position, with little room for negotiation. This approach simplifies the hiring process and avoids potential legal issues.

Despite these changes, some employers still ask about your previous salary. According to employment experts, this is often an attempt to low-ball their salary offer. It's important to understand that your previous salary does not determine your worth or potential future earnings. Instead, it may be used as a reference point for negotiation.

Responding to Questions About Previous Salary

What to Say if You're Asked

If a potential employer asks about your previous salary, you don't have to provide the information. You might want to consider the following responses:

My pay was not commensurate with my duties. It was within market value for the work I did.

These responses can help you communicate your value without revealing sensitive information.

Salary Expectations

It's often more effective to discuss your salary expectations from the outset. You can answer with a range: "I’m expecting to be compensated in this range: nn - nn." This framing allows you to set your expectations and still leave room for negotiation.

Why Not Share the Information?

Sharing your previous salary can be risky. It may lead to under-offering or unfair negotiation. Moreover, it can perpetuate the cycle of pay inequality. You should focus on discussing the value you can bring to the new role and what salary would satisfy your needs.

Practical Tips for Salary Negotiation

Salary negotiation is a critical step in any job search. Here are some practical tips to help you navigate this process:

Research market rates: Understand the typical salary range for the position in your area. Highlight your value: Emphasize your skills, experience, and how you can contribute to the company. Consider the position: Think about why you want the job and whether a lower starting salary might be acceptable for personal or professional reasons. Be prepared to negotiate: Come to the negotiation with specific salary requirements.

By focusing on your worth and the value you bring, you can achieve a fair and reasonable salary offer.

Conclusion

While potential employers may ask about your previous salary, you are not obligated to provide this information. Laws vary by region, and the best practice is to understand the legal framework in your area. By approaching salary negotiations with confidence and knowledge, you can secure a fair offer for your next job.

Final Thoughts

Salary history is a complex issue that can impact job opportunities and pay equality. By becoming informed and prepared, you can navigate salary negotiations with confidence and fairness. Remember, your worth is determined by your skills and contributions, not your past earnings.