Gwinnett Technical College
Spring 2020 – Employment Rules & Regulations (MGMT. 1110)
Adjunct Faculty: Dr. José A. De La Cruz, JD., SHRM-SCP, SPHR
K N O W L E D G E N U G G E T (#2)
EQUAL PAY
Several jurisdictions (states/counties/cities, etc.) have started to revisit equal-pay laws to update or expand their protections. The latest attempt to eliminate pay inequity for traditionally disadvantaged groups – e.g., women and racial/ethnic minorities – is through salary history bans.
This trend first started in 2017 with New York, Louisiana, and Delaware. Today, there are 17 state bans, including Georgia, and 19 local bans in place.
Basically, these laws limit an employer’s or hiring manager’s ability to request or consider an applicant’s past salary history during the hiring process. As the employer or hiring manager, you cannot ask an applicant how much they presently make in their current job or any job in the past. The idea behind these laws is that by using past pay history as the basis for computing future pay, the historically lower pay earned by females and people of color will be compounded by allowing their consideration in determining that individual’s pay moving forward.
Some states though are bucking this salary history ban approach. These opponents of such bans argue that they artificially raise salaries, thereby increasing costs that will force employers to lose money and hurt employees by limiting employers’ pay raises and benefits, and eventually causing employers to cut jobs.
Share your Knowledge Nugget on whether employers should have the right to request or consider an applicant’s past salary history during the hiring process to determine future pay.
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