Wisconsin bucks trend, permits employers to ask about salary history

State and local governments throughout the country have increasingly adopted laws and regulations that prohibit employers from inquiring about a job applicant's salary history during the interview process. Wisconsin has taken the opposite approach by enacting a law that specifically allows employers to ask about a candidate's salary history and prevents local governments from passing laws that prevent such questions by employers.

Nationwide trend

To date, at least 17 states (including California, Illinois, and New York) and a number of local governments have enacted laws that preclude employers from asking about employees' salary histories on applications or during the hiring process. The number will likely grow as other state and local governments follow suit and enact similar laws.

The basis for salary history bans is pretty straightforward. Potential employees who earned less in previous jobs are more likely to accept lower pay and benefits than those who earned more. When employers have salary history information, they are more likely to offer lower pay and perpetuate wage disparities among lower-earning employees. Salary history bans are designed to eliminate the disparities and end the perpetuation of low pay when employees change jobs.

Wisconsin's ban on salary bans

Wisconsin and at least one other state (Michigan) have taken the opposite approach and enacted laws that specifically permit employers to inquire about an applicant's pay history during the interview process. Proponents argue: