Is It Legal to Ask for Salary History in Maryland

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Employers cannot obtain a pay history, but they can confirm salary history voluntarily provided by a candidate after an initial job offer, including an offer of compensation, has been made. Upon request, the employer must inform the candidate of the salary range of the job for which he has applied. Wage history bans are intended to close the gender pay gap. According to the National Women`s Law Center, Maryland women typically earn 86 cents for every dollar paid to white men. The national figure is 82 cents, the organization says. The gap is even worse for members of minority communities. Black women in Maryland receive only 68 cents for every dollar paid to non-Hispanic white men, and Hispanic women receive 46 cents for every dollar paid to white men. Starting at 1. Starting in October 2020, Maryland employees will have more power in wage negotiations with employers. House Bill 123 amends certain provisions of the Maryland Equal Pay for Equal Work Act. HB123 requires employers to provide a salary range for a position at the request of the candidate, and it also creates a prohibition on salary history. HB14 protects employees from retaliation when they demand their own salary. Prior to the change, the law only protected workers from asking about employees` wages.

At a high level, Maryland`s salary history ban covers two areas that affect employers when hiring: New Jersey agencies and offices are prohibited from asking applicants for their compensation history or reviewing candidates` previous salaries. The prohibition also prohibits an employer from retaliating against a candidate or refusing to interview or hire a candidate if the candidate fails to provide salary information or requests a salary range for the position. Since Maryland`s wage history ban will soon go into effect, employers should ensure their hiring practices and procedures comply with the new law. Employers cannot request a candidate`s salary history unless it has been voluntarily disclosed. Employers are prohibited from asking for candidates` salary history, and they cannot rely on this information unless the candidate volunteers. The law does not apply to internal candidates. Employers cannot ask for or rely on candidates` salary history when deciding to offer a job or determine salaries, benefits or other compensation during the hiring process. Employers may ask questions about the applicant`s expectations for salary, benefits and compensation.

The prohibitions in the Act do not apply to the voluntary and unsolicited disclosure of salary history information by an applicant. The new law requires an employer to provide the candidate, upon request, with the salary range for the job for which the candidate has applied. Employers cannot retaliate against a candidate or refuse to interview, hire or employ a candidate who does not provide a salary history or who requires a salary range from the employer. Employers are not allowed to screen candidates based on their salary history. Employers cannot require that an applicant`s previous wages, wages or benefits meet minimum or maximum criteria. If a candidate voluntarily discloses salary history without the employer`s request or coercion, an employer may review the candidate`s salary history and also consider the salary history to determine the candidate`s salary, benefits and other compensation. Once the candidate has received an offer of employment that includes an explanation of the total compensation, an employer may ask the candidate to provide a written power of attorney confirming the salary history. Second, an employer cannot ask a candidate in any way (verbally, in writing, or from a representative, or from their current or former employer) for their salary history and cannot rely on the candidate`s pay history to verify the job applicant or determine the candidate`s salary. This general wording prohibits the employer from doing indirectly what it cannot do directly.

In other words, the employer cannot allow a background officer to request information about the applicant`s salary history. The same anti-retaliation provisions apply. Proponents of the wage history ban argue that women and people of color are paid less than men at their first jobs and that the wage gap is maintained throughout their careers because most employers base workers` compensation on wages and compensation they received in their previous jobs. leaving women and minorities with long-standing wage deficits. Employers are not allowed to search for salary history. However, you can confirm this information if the applicant discloses it voluntarily or if an offer has been extended. The county will not seek or rely on a candidate`s salary history as a factor in deciding whether to hire the candidate or determine salary. The county cannot retaliate or refuse to hire a candidate if the applicant refuses to disclose their salary history. The county may rely on a candidate`s voluntarily disclosed salary history to offer them a higher salary than originally offered, provided it does not result in unequal pay for equal work based on sex. Despite a legislative period cut short by the global COVID-19 pandemic, Maryland lawmakers have managed to pass several key laws affecting Maryland employers.

One of these is a wage history ban that prohibits all employers from asking, or even relying on, a potential employee`s past salary unless it is provided voluntarily. The new law imposes several restrictions on the interrogation or use of salary history in the hiring process, including requesting or researching a candidate`s pay history, directly or indirectly, and prohibits reliance on a candidate`s pay history. An applicant may voluntarily share salary history under HB123. However, an employer cannot rely on this voluntarily disclosed information if it results in an illegal pay gap based on sex or gender identity. In other words, if the salary history results in the payment of a lower gender or salary, the higher salary must always be paid. Employers cannot look for salary history, nor can they rely on pay history when considering a job candidate or determining salary. However, you can confirm and rely on salary history after a job offer has been made to support a higher salary than originally offered. Employers must also provide a salary range for a particular position. As of October 1, 2020, Maryland employers are generally no longer allowed to request or rely on a candidate`s compensation history when making decisions about hiring or determining starting salary — and may be required to provide the candidate with salary range information. The recently passed law amends Maryland`s equal pay for equal work law. The Cincinnati, Ohio, wage history ban is expected to go into effect in March 2020.

Departments cannot request a candidate`s salary history until a conditional offer of employment has been renewed. You also can`t ask a current or previous employer or search public databases to determine a candidate`s current or past salary. Information already known or accidentally discovered may not be taken into account. Atlanta will not ask for salary history in its applications, oral interviews or shortlists. In July, the Supreme Court refused to review the lower courts` split decision on whether prior pay is a „non-gender factor“ that can justify wage inequality under the federal Equal Pay Act, which requires „equal pay for equal work, regardless of gender.“ Philadelphia`s ban on salary history received the green light from a federal appeals court in February. Employers are not allowed to request candidates` salary history. If this information is provided voluntarily, employers cannot confirm it until a job offer has been made. However, an employer can only rely on a voluntarily submitted wage history if it does not result in an illegal wage difference based on sex or gender identity.

Employers cannot refuse to hire, interview, promote or hire a candidate if the candidate has chosen not to provide a salary history. The law confirms that candidates can voluntarily share their salary history with an employer during the hiring process. Once an employer has made an initial offer of employment, including a compensation proposal, the employer may: The First Amendment, HB123, has two components. It adds a requirement that employers provide candidates with a salary range for a position upon request, and creates a salary history ban. On February 6, 2020, the U.S. 3rd Court of Appeals ruled that Philadelphia could enforce its salary history ban and lift a lower court`s injunction. The city of Philadelphia announced its decision on September 6. It announced that its Human Relations Commission (HRCP) will begin enforcing the salary history ban on September 1, 2020.

Maryland employers will soon be prohibited from requesting or relying on a candidate`s pay history to make decisions about employment or initial pay rates, forcing many employers to immediately change their hiring practices. Beginning October 1, 2020, Maryland will join many other states and local jurisdictions that have prohibited or restricted the use of candidates` salary histories to set rates of pay for open positions. While Maryland employers may rely on the compensation history voluntarily provided by candidates with some significant limitations, you need to be careful about this. What do you need to know about this important change in state law? Starting at 1. In July, the Virginia Department of Human Resources Management will introduce an updated app for government agencies that eliminates the field of salary history, according to a June 20 announcement by Gov. Ralph Northam. State and local governments are increasingly enacting laws and regulations prohibiting employers from requesting information about the salary history of job applicants.