Philadelphia Mayor Jim Kenney signed a bill on Monday that prohibits employers from asking candidates about their salary history. Like the Massachusetts bill that passed this summer (but won’t go into effect until January 1, 2018), the goal is to help end gender pay discrimination.
The theory is that since women tend to have lower salaries than men, and since many businesses make their current salary offer based on previous salaries, one underpaid job in 1992 can affect you the rest of your life. By prohibiting employers from asking about your salary history, hiring managers will have to make a salary offer based on market data and won’t be influenced by a low previous salary.
I’m not a fan of government regulations, but I like the idea behind these laws. Businesses should be looking at market data. They should be the ones to say, “this job pays $X per year, are you interested?” I don’t think this will solve all problems, but I do think it will help. However, Wharton Professor Peter Capelli thinks it could backfire and hurt the people it’s claiming to help.
To keep reading, click here: Philadelphia Joins Massachusetts in Making Salary History Questions Illegal