Can an employer ask about previous salary?

Employers are free to ask you about your current and past salaries under federal law. However, many states have their own laws about this question. Private and public employers cannot ask your salary history, and even if they have the information, they cannot use it in setting your pay.

Why does employer ask about salary?

Not only could it indicate you’re more interested in the money than you are in the actual job, it could also imply that you don’t have much to offer in terms of skills and experience. So, before you start to think about how much you’re making, make sure you cover all the other interview bases first.

Why would an employer ask for your salary history?

These reasons generally include the following: They want to determine your market value. Your salary history — specifically the salary you earned in your most recent position — is one factor an employer can use to gauge your level of experience and the value you’ll bring as an employee.

Why do employers ask about salary in an interview?

Employers ask about salary to gauge the market for your position. If you’re interviewing for a position that’s like what you’ve been doing in the past, a company might look at your compensation as a competitive rate. But not all jobs are created — or paid — equally and fairly.

Should small businesses stop asking for previous salary information?

Businesses have also used previous salary information to calculate new hire compensation—a process that can perpetuate pay disparity between women and men. To address this inequality, several states and municipalities have enacted bans on asking for previous salary information, although laws vary in terms, scope and applicability.

Should I tell a prospective employer my current or past salary?

However, if you voluntarily tell a prospective employer about your current or past salary, it is typically free to use that information in setting your pay. Should I Answer Questions About Salary History?