At Life Is Good, the Boston-based apparel company, asking candidates about their prior salaries was a crucial part of the hiring process, especially for senior positions, Inc. reported. … But that source of strategic info was threatened in August 2016, when Massachusetts became the first state to bar employers from asking job applicants about their previous salaries, because basing a new salary on a prior one perpetuates wage gaps between white men and everyone else. Since then, Delaware, Oregon, Puerto Rico, New York City, Philadelphia, and San Francisco have approved similar laws. …
The Massachusetts law goes into effect in 2018, but Life Is Good has already forbidden hiring managers from asking about salaries, Inc. reported. The company now bases starting salary offers on external job market data. Even if your state doesn't have the restriction, you may be affected if you hire staff in states that do. These founders have learned to make smart salary offers while following the rules. …
Employers should make sure that they have trained their interviewers to avoid overtly "asking for the information, or prodding in any way," says Jason Habinsky, a partner at law firm Haynes and Boone, LLP in New York City. It's also vital that HR departments amend their employment applications to remove any prior-salary questions if the application is used in a location affected by a ban. …
Excerpted from Inc. To read the full article, click here.