On October 12, 2017, California joined three other states in enacting a bill that will keep salary histories a thing of the past. Starting January 1, 2018, it will become illegal for California employers to request previous salary histories from potential future employees. With this new law, candidates will no longer be asked the question, “So, what did you make at your old job?” Despite this question seeming harmless, this tidbit of information can actually cause havoc on the potential earnings of a new hire.
If an employer wants to hire you for their team, they will draft up a salary amount that you may or may not accept. If an employer knows that you made $50,000 at your previous job, this can lead to their first offer being $55,000. Obviously this is an increase in pay, but an employer should not being giving you a starting offer based on past employment. People should be given wage offers based on the position they are applying for and the qualities that they can bring to their company.
When it comes to salary, negotiations are everything, and when an employer can offer you a starting amount based on prior knowledge of their interviewees salaries, employers are a huge step ahead. This law will be a huge win for all Californian workers who are looking to be compensated for who they are and what they do rather than their past wage.
Why Salary History Is More Than a Monetary Issue
Women and minorities have historically both been paid lower wages than their colleagues. One of the main reasons that this has continued to be true is an interviewee’s obligation to tell their future employer about their current salary. If an under-valued employee started working at $45,000 a year, then each job offer after that will offer pay based on the original low-ball salary. After four pay increases, this employee may only end up receiving $55,000 because each employer after the first has only bumped up the employee’s pay based on previous salary rather than ability or position.
For an employee who was actually compensated correctly at the first job at $60,000, after four changes in positions they might be receiving a yearly salary of $70,000. The discrepancy is obvious, and the fault lies with salary history being a part of hiring process. However, this will no longer be a concern after January 1. This new law is another step toward wage equality and huge win for personal privacy for employees.
Mark This Down!
If you or a loved one is planning on changing employers soon, bookmark this website! As soon as January 1, 2018 hits, it will be illegal for a potential employer to ask you about your current or previous salary! Your salary information will be private knowledge, and no employer will be able to discriminate based on past wages! Fight for your right to privacy and equality. Remember what is at stake! You should be offered what you are worth!
Alan Burton Newman deals with any company for any client. If your privacy has been infringed upon, you need our Los Angeles employment law firm to fight for you. Call for free to learn if you have a case.