The Impact of Recent Laws on Salary Disclosure in Job Applications

Recent laws, such as the one in Massachusetts, prohibit employers from asking job applicants about their previous salary. HR professionals have adjusted their approach by asking applicants what salary they expect to make instead. This new approach is expected to result in employees aiming for the highest possible salary that they would accept, while also communicating their outside options. Employees who believe their past earnings are higher than average may choose to disclose that information as a way of signaling their credibility and negotiability. By asking about future salary expectations instead of past salaries, the aim of these laws is to address the pay gap, particularly for women who have stepped out of the labor market. The hope is that women will have enough information to ask for salaries that correct for their previous lower salaries. However, it is important to note that employers can still infer the gender of the employee and make inferences based on this information. The overall impact and effectiveness of these laws are still uncertain and require further study.