Pay disparity between the genders has been a fact of life in the United States labor force for decades. While there is ample debate as to the possible causes of this inequity, lawmakers across the country are responding to calls to close the gender pay gap in ways that challenge traditional notions of setting salaries for new hires. Many jurisdictions have implemented or proposed bans on salary history inquiries in the hiring process as a means to curb disparate pay decisions that may follow a woman throughout her career. Some New Jersey employers are already considering changes to their hiring practices and procedures to attract and retain diverse talent without running afoul of the anticipated salary inquiry ban and other related changes in law that may be coming to the state in the near future.
Salary History Inquiry Bans Are on Trend
According to a National Women’s Law Center report that analyzed data gathered from the U.S. Census Bureau’s 2015 American Community Survey, on average, women earn approximately 80 cents for every dollar that their male counterparts earn. In some states, the ratio is worse. Because many employers have historically asked candidates about their salaries in prior employment as a guideline or basis for determining pay, women receive comparably lower salaries in subsequent jobs as well. A recent report by the American Association of University Women indicates that, although there has been some progress toward closing the gender pay gap since the 1960s, that progress has been losing traction since 2001—at the current rate, the gender pay gap likely will not close until 2152.
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