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While employers generally ask job applicants for past salary history, workers have long complained that offering such information can put them at a disadvantage in negotiations. New laws being proposed would now limit employers' ability to ask about previous pay information, and advocates say it could help spur more pay equality.

In early May 2017, New York Mayor Bill de Blasio signed into law a bill that would ban employers from asking what applicants have earned at their other jobs. The law will go into effect in October and will require employers to change job applications and use new practices in how they engage in discussions about salary history. Philadelphia and Massachusetts already have similar laws on the books, and the National Conference of State Legislatures said more than 20 states are considering similar legislation that would bar employers from asking about a job applicant's pay history.

The proposed Pay Equity for All Act of 2017 would expand that rule on a national level and prohibit employers from asking about previous forms of compensation such as salary and benefits. U.S. Congresswoman Eleanor Holmes Norton (D-D.C.) said the practice of asking for salary history disadvantages women and minorities because they disproportionately carry lower salaries and have less power in negotiation. "Our bill will help reduce the wage gap by requiring employers to offer salaries to prospective employees based on merit, not gender, race, or ethnicity," Norton says.

Yet regardless of gender or ethnicity, job candidates often are conflicted when addressing salary history. The thinking says too high of a salary could eliminate the candidate from the interview process, while too low of a salary could entice the employer to make a "lowball" salary offer. Peg Newman, managing partner of Sanford Rose Associates - Newman Group, advises jobseekers to "be cooperative" during the application process. She says leaving salary history blank could cause frustration on the behalf of those who are evaluating candidates. One thing candidates can do is to list all compensation, including benefits and bonuses, or state that they're "happy to discuss." "Neither of these is a perfect option, but leaving it blank, in my opinion, is never a good idea," Newman says.

Newman also says disclosing salary history is an opportunity for the candidate to show what they are used to in terms of compensation and benefits. It gives an employer a starting point because many positions can pay a wide range of salaries based on location, role and company size. Salary history also gives the employer a "reference point" and is not the only factor in determining factor in an initial offer, Newman says.

Yet Judith Lindenberger, HR professional and president of The Lindenberger Group, says having access to salary history does give the employer more power in the negotiation process. While she recommends candidates respond to a request truthfully, she also advises them not to offer more information beyond what's asked. "If someone made more money before, the hiring manager might be worried that the candidate won't stay or will be demotivated," Lindenberger says. "If someone made less money before, the hiring manager might wonder if the candidate is worth paying the higher salary."

More workers are beginning to question their pay relative to industry standards and their coworkers. A 2016 workforce study by Willis Towers Watson found that only 53 percent of respondents felt they were being fairly compensated while nearly a quarter felt they were not. And according to an analysis of the 2015 American Community Survey data by the National Women's Law Center, women on average earn 80 cents for every dollar earned by men.

Newman says while such laws could potentially reduce the gender gap in some situations, it's not "a blanket cure." She says one downside for both employers and candidates is that it may extend hiring processes because employers have to field more candidates "when a simple conversation about pay would give both the clarity to make a 'go or no-go' decision."

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