What does a Salary History Ban have to do with Your Background Investigations?

As a new year and decade loom, two states are implementing salary history bans - New York and New Jersey. As efforts to achieve pay equity are undertaken, states are passing salary history ban legislation.

As human resource professionals adjust their procedures to comply, they should look beyond their job application and interview questions and into what information they are capturing during the background investigation process and being relayed on the reports of their background investigations.

“It is imperative that these applicant tracking systems be reviewed to make sure they are in compliance and adjusted accordingly.”

Let's take a look at capturing beyond the job application. Applicants are asked to sign background investigations consent forms as part of the hiring process. 

Sometimes this is in conjunction with gathering additional information to enhance the background and applicants may be asked about employment history, and part of the ask may be salary. 

This type of ask is now illegal. Beyond a hard copy or electronic consent form, there are applicant tracking systems that gather all sorts of information and relay some to a background screening company.  

It is imperative that these applicant tracking systems be reviewed to make sure they are in compliance and adjusted accordingly.

The background investigations reports are another place for a quick review, especially if employment verifications are part of the background. 

If the employer using the report is in a salary history ban jurisdiction, they want to be prudent and make sure salary history information is not being relayed.   

Don't assume salary history bans are being monitored by your background investigations company unless you use Commercial Investigations LLC. Contact us to learn more.

Written by Michelle Pyan