Due to new legislation being enacted across the country, you need to change how you ask potential new hires about compensation.
There are new laws being enacted across the country that impact our ability to discuss compensation during the interview process. How can you adjust the questions you ask so you can abide by these laws?
Before I answer that, I want to issue a quick disclaimer: I am not a lawyer, and this isn’t legal advice. If you want to explore this topic further in depth, I recommend you work with your own internal HR and legal team so you’re abiding by the laws within your own market.
Now, the cause of this new legislation is the gap in gender pay. Studies suggest that women who work the same jobs as men make $0.80 to $0.85 on the dollar less than they do. Some people believe that asking a potential new hire what they make is how companies decide what salary to offer them, and that question is perpetuating the gender pay inequity.
Certain states and cities already have legislation in place to prevent this salary question, and we’re seeing it spread to other areas too, including California, Oregon, Massachusetts, Delaware, New York City, Philadelphia, and New Orleans.
Now that you know these laws are coming, you can get ahead of the curve and implement them across your organization.
So, from a hiring perspective, be aware that you need to slightly change how you ask questions pertaining to salary. For example, what is legal to ask is, “What compensation package would you be looking for in your next opportunity?” This is more of a future-thinking statement rather than a question about what the person you’re potentially hiring is currently making.
You can also ask a person what they would need to make in their next move, where they would like to be in their comp plan, and what they expect to make in the position you’re offering.
Now that you know these laws are coming, you can get ahead of the curve and implement them across your organization.
As always, if you have any questions about this topic or there’s anything else I can assist you with, don’t hesitate to reach out to me. I would be glad to help you.
