Dive Brief:
- The governor of Illinois has vetoed the state's "No Salary History" bill, reports the Chicago Tribune. The law would have prohibited employers from asking job candidates about their salary histories.
- Several other states and various cities have adopted such laws, citing the need to remedy the gender pay gap. Basing workers' salaries on their previous pay perpetuates that disparity, proponents say.
- State lawmakers could potentially override the veto in November, according to the Tribune.
Dive Insight:
Employers are still struggling to ensure their their pay practices are gender-neutral. Willis Towers Watson’s 2016 Global Workforce Study found that half of employers lack a mechanism to make sure their pay is fair. Compensation audits can help, and employers are increasing turning to data analysis as part of those efforts.
The various state and local laws prohibiting salary history questions are another piece to that puzzle, proponents say. Philadelphia was the first U.S. city to outlaw such inquiries, but opposition from the local chamber of commerce has the bill tied up in court. San Francisco is the latest to the join the growing list.
Employers have generally opposed these bills, citing a need to remain competitive; most employees, however, believe companies shouldn't ask applicants about their salary histories.
