Employers Pay Lower Salaries by Breaking The Law
Across the US, many employers remain uninformed of salary history bans, keeping professionals underpaid. The interview is a tough place to hold employers accountable, but at RCF, we’ve devised some methods to help you do just that and get paid more.
Salary History Requirements Lead to Lower Salaries
The question, “How much are you currently making?” may seem harmless, but it has the potential to cost you thousands of dollars in salary.
When you answer this question, employers often use it to diminish your worth as a basis for your starting salary. You should be paid for your skills or at the higher rate they intended to spend.
Even worse, they may disqualify you for the role entirely because if you are making grossly less than the budgeted position, they may assume you are less qualified than their ideal candidate.
Unknowingly you may have begun your career underpaid because of bias or pure circumstance. Every time your next job uses your last salary as your starting base, your career continues at a lower valued state. This cycle continues with every new employer costing you hundreds of thousands of dollars over your career life.
Know the Salary History Laws in Your Area
More than 50% of US states have enacted laws promoting pay equity. The following are the states within the US that have banned employers from requesting salary history:
If your state hasn’t passed salary history bans yet, keep reading for resources on how you can overcome this setback.
Many of the laws include a series of restrictions that eliminate salary requests. For instance, as of Oct 1, 2020, the new conditions for Maryland’s Equal Pay for Equal Work Laws dictate that during the hiring process, Maryland employers may not:
However, nearly 2 years later, about 65% of my Maryland clients claim employers are still asking how much they currently make. The best way to overcome this question is to prepare for it. Below are a few methods you can use so that it doesn’t stop you from getting paid more. ?
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3 METHODS TO ANSWER, “What is your current salary?”
1.??The Conversational Method
Your Response: Did you know that there is a new law that makes that question out of bounds now?
Wait for their response. Then let the interviewer know the law, where it applies, when it was enacted, and where they can find out more about it. After that, wait for their next question or ask if they want you to provide your salary expectations instead.
This method should be conversational and matter-of-fact in tone, which is why you should wait for a response. Finesse in tone and delivery is essential to this method because if you come across as accusatory and unfriendly, the interviewers may feel like they are on trial.
Pro Tip: Keep the word “illegal” out of your conversation.?People naturally tend to get defensive when told they’re doing something illegal.
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2.??Normalize It Method
Your Response: The state hasn’t done a good job of getting the message out, but as of {insert month and year law was enacted}, there’s a new law that makes asking candidates about current or past salaries out of bounds. I can share my salary expectations—if that works??
With this method, you have normalized the error and breezed over it. The fault doesn’t belong to the interviewer for asking the question; you have now placed blame on “the state” or whichever locality you’re referencing. Be prepared with the name of the law in case they ask.
3.??The Direct Method
Your Response: ?You should consider omitting that question from your interview. As of {insert month/year law was enacted}, the {name of law} law passed in {locality} states that employers are no longer able to ask candidates about their past or current salary, but I’m comfortable with sharing my salary expectations if that works for you??
This method leaves no room for interpretation and minimizes follow-up questions. It also demonstrates your direct approach, which may be especially helpful to managerial or supervisory roles.
Before you use ANY of these methods…
Perfect your technique BEFORE the interview
Options if They insist on Your Current Salary
Some people will persist, even though they shouldn’t – red flag alert! Remember, the company is not the only interviewer; YOU are also interviewing the company. If an employer has been made aware that they are partaking in an illegal practice but continue to do it, you may want to steer clear of them.
Options for your Response:
Stop Companies That Violate Salary History Laws
If the law protecting salary history exists in your area, report employers asking about salary history or requiring salary history in applications.
The more employers are sanctioned, the faster employers will enforce these laws towards more significant equity in the workplace.
Let’s work on getting professionals paid based on experience and education and hold employers accountable when they are not practicing laws that promote wage equity.
Research to find out if salary history bans are in effect in your area.
Make more money in your career faster
Whether or not you have salary history bans in your state, make $20,000 - $50,000 more in your next job, elevate your career, and live your best life sooner by joining an RCF Career Advancement Program.
Budget Analyst
2 年Good informarion. Thank you.