State Bans Employers from Asking Job Applicants About Salary History

State Bans Employers from Asking Job Applicants About Salary History

Illinois Gov. JB Pritzker signed legislation Wednesday banning employers from asking job applicants about their salary history.

The law, which takes effect in 60 days, also ensures employees can discuss their salary, benefits, or other compensation with colleagues, a practice that some employers prohibit or discourage.

Officials say the new law is about gender and income equity in the workplace.

“The hiring process serves one purpose and one purpose alone: finding the best person for the job at hand. It’s no longer acceptable to wring quality work out of capable women at a discounted rate,” Pritzker said.

Women in Illinois make up almost half the workforce but earn 79 percent of what men earn, the state news release said.

Two Kane County state officials strongly backed the legislation.

“In 2019, women in Illinois still make roughly 20% less than their male counterparts and for women of color the disparities are even greater,” said Rep. Anna Moeller, D-Elgin. “HB 834 is aimed at closing that wage gap. It ends the pernicious practice of using prior wages to determine future pay and increases the penalties on companies and organizations that utilize discriminatory pay practices.”

“I don’t believe that all employers consciously discriminate, but they need to become aware of this issue,” said Sen. Cristina Castro, D-Elgin. “Many employers tend to set salaries for new hires using their previous salary rather than basing it off of the applicant’s worth to the company. Businesses shouldn’t see this new law as a threat; it is the right thing to do.”

Wendy Pollack, Women’s Law & Policy Initiative director at the Shriver Center on Poverty Law, said income inequality is a very real problem.

“Women in Illinois earn on average just 79 cents to every dollar that white men earn,” she said. “And for women of color, the wage gap is much worse. Black women earn just 63 cents and Latinas earn just 48 cents as compared to white men. This new law will take us a step closer to achieving income equality in Illinois.”

SOURCE: state of Illinois news release