As more U.S. states adopt legislation aimed at reducing wage inequality (including the Salary Transparency Act), salary history regulations have become a crucial compliance consideration – especially for recruitment firms operating across multiple jurisdictions.
In this blog, we break down what salary history legislation is, why it matters, and how to stay compliant when placing talent in the U.S.
What does salary history legislation do?
Salary history legislation refers to laws that prohibit employers – including recruiters acting on their behalf – from asking job candidates about their current or past compensation during the hiring process.
The goal of the legislation is to close wage gaps, particularly for women and minorities, by ensuring that new compensation offers are based on the role’s value, not the applicant’s past pay.
Why salary legislation matters to recruitment firms
When you’re trying to fill roles in the U.S., you may be subject to state or city-specific salary history regulations even if you’re based elsewhere. This presents unique implications you need to keep in mind.
- Job ads, screening calls, and intake forms must avoid compensation history questions.
- Clients may rely on you for compliance – especially if they’re hiring across state lines.
- Violations can result in penalties and damage trust with both candidates and clients.
Where is salary history legislation in effect?
As of 2025, the following states and localities have salary history legislation in place to protect workers.
- Rhode Island
- Vermont
- Washington
- Alabama
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Hawaii
- Illinois
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- Nevada
- New Jersey
- New York (statewide)
- Ohio (limited to Cincinnati & Toledo)
- Oregon
- Pennsylvania (Philadelphia only)
- Rhode Island
- Vermont
- Washington
- Wisconsin
Note: Some legislation applies only to public employers, while others affect all employers including third-party recruiters.
Each jurisdiction has different nuances – some allow voluntary disclosure.
What’s Prohibited?
While laws vary, most legislation prohibits:
- Asking about a candidate’s current or past salary, benefits, or bonus structure
- Using salary history to set or negotiate an offer
- Asking a former employer about salary details
How Recruiters and EORs Can Stay Compliant
To stay compliant, you should make sure to audit your hiring process, and remove salary history fields from application forms, ATS software, and interview scripts.
Prioritise salary expectations and published ranges over backward-looking compensation.
Partner up with an EOR to help you keep on top of changing jurisdictions place talent confidently, without getting tangled in 50 different sets of rules.
Contact our team to get started.