Do you rely on what someone has made in the past to determine what you are going to pay them for your job? If the answer is yes you may want to rethink that methodology. The State of Hawaii is the latest in a growing list of states and local governments that are banning salary history questions in the hiring process. According to the HR Dive, which keeps a running tally, there are currently 10 states and 8 local government bans currently in effect in the United States.
The bans vary
The extent of the bans varies by jurisdiction. For example, the State of New York prohibits state agencies from asking salary history questions and the ban does not include private employers, except in New York City. The city has extended the ban to all private employers in the City. Hawaii, the most recent state to ban salary history, includes all employers. So you need to be aware of both state and local laws.
What should you do?
The best thing to do is to establish a value for the jobs you have, set a wage structure, the make an offer to a candidate based on that wage structure. You cannot make the determination that the candidate may or may not accept the offer, you have to let them make that determination. You give it your best shot. You had better make it a good offer because some places are pushing to eliminate salary negotiation. It is becoming a take-it-or-leave-it proposition. (See Future Friday: Will employees be setting wages in the future?)