Hiring managers of BD and marketing professionals, what do the salary history bans mean for you?

(For updates on which States and cities are impacted as at the time of reading this article, please visit this blog for the most up-to-date information: Salary history bans in 2021.)

If you’re a hiring manager in a firm, what does that mean for you with the numerous cities and states that are now impacted by the new salary history bans?
 
Below I set out the three key things you must do as a hiring manager to ensure compliance with the new laws. But first, know which new geographies have been recently added to the list: Kansas City, Washington state, Colorado and Maine.
 
Here is a list of the affected geographies for firms: 

2017:

• Oregon - October 6, 2017
• New York City - October 31, 2017
• Delaware - December 14, 2017
• Albany County (NY) - December 17, 2017

2018:

• California - January 1, 2018
• Massachusetts - July 1, 2018
• Vermont - July 1, 2018
• Westchester County (NY) - July 9, 2018

​2019:

• Connecticut - January 1, 2019
• Hawaii - January 1, 2019
• Suffolk County (NY) - June 30, 2019
• Washington – July 28, 2019
• Alabama – September 1, 2019
• Maine – September 17, 2019
• Chicago – September 29, 2019
• Kansas City – October 31, 2019

2020:

• New Jersey – January 1, 2020
• New York – January 6, 2020
• Cincinnati – estimated to be March 10, 2020
• Toledo – June 25, 2020

2021:

• Colorado – January 1, 2021

 
An important note: the following geographies currently only affect city or state employers. So, not firms. However, precedent would suggest that best practices should be followed as if it did impact your firm; over time similar bans could also be enacted which will impact more than just city or state employees:

2017:

• City of New Orleans LA - January 25, 2017
• City of Pittsburgh PA - January 30, 2017

​2018:

• City of Salt Lake City UT – March 1, 2018
• City of Louisville KY - May 17, 2018
• State of Pennsylvania - September 4, 2018

​2019:

• ​City of Atlanta GA – February 18, 2019
• State of North Carolina – April 2, 2019
• State of South Carolina – May 23, 2019
• City of Jackson MS – June 13, 2019
• Montgomery County (Maryland) – August 14, 2019

 
As a hiring manager, here’s what you need to do:

1. Update Internal policies or practices to inform interviewers they must not ask questions relating to salary. These updates then need to be shared with the greater hiring team so each internal hiring manager is educated on the new laws. Also consider whether these best practices should be shared with the partnership, as final interviews are mostly conducted by partners, who may want to discuss salary.
2. Ensure any automated processes that screen based on salary are removed.
3. Know your geography and what applies. For example:​ (a) Do you have an office where there are special provisions which impact what to do if a candidate volunteers their salary information? New York City says you still can’t use this information to formulate an offer. Kansas City disagrees with this and says you can; (b) If a candidate asks for the salary range when being interviewed, do you have to provide that range? California says you do have to provide that information; (c) Are you in a geography that is not currently impacted, but is likely to be? Based on recent developments, Cincinnati and Philadelphia will likely be included in these bans in the not too distant future, so best to establish best practices early to be prudent.

 
Your firm leadership should be standing on the right side of this issue. Your clients and prospective employees will care. Get on the front foot to establish yourself as an employer who is actively addressing these issues.
 

(NOTE: This article is not to be taken as legal advice. The author is not a practicing attorney, nor does the author purport to be. For any legal question or issue related to these topics in your state or city, you should seek advice from a practicing attorney.)