Key strategies on providing your salary history to a prospective employer

In most states, providing salary history to a potential employer is not a legal requirement. However, some organizations request potential employees to provide this information either at the time of interview or when they’re submitting their resume as part of the job application. 

If your employer wants you to mention your salary history, you’ve come to the right place. In this blog post, we’ll discuss:

• Why an employer might ask you to share your remuneration history

• Tips on disclosing your salary history to an employer

Why do companies ask you to provide salary history?

When an employer asks you to disclose your salary history, it’s probably for the same reason they’d ask you to share your salary expectations. Here are a few reasons behind this request.

Determine your market value

Your salary history, especially your remuneration package at your existing employer or at your most recent job, helps your prospective employer evaluate your level of experience and the value you’ll bring to the company.

Ensure compliance with the budget

Organizations typically have a budget for each role they’re looking to fill. An employer might ask you to disclose your salary history to determine whether they will be able to afford your services with their existing budget.

Practice fairness and equality

If your salary history exceeds the budget the organization has allotted for your job role, and they really need your services, they might revise their budget to ensure you’re fairly compensated for your services and that you’ll stay for the long haul.

Is it legal in the US to ask for salary history?

Some states in the US have a salary history ban that prevents employers from asking employees to share their salary history. However, in the states where this ban is not applicable, an employer is within their legal right to ask you this question.

Can I refuse to disclose my previous salary?

You don’t have to disclose your salary history to an employer if you’re not comfortable, even if there’s no salary history ban in your state. You can politely dodge this question by saying something like, “I would like to learn more about my new job role first before discussing my salary history.” 

What can I do when a potential employer asks for salary history? 3 Options

There are different ways you can disclose your salary history to a potential employer, such as  adding it to your resume next to each job title. Here are three other methods to consider when sharing your salary history with a potential employer.

1. Keep it vague

If you’re not comfortable disclosing your actual salary, but you don’t want to make a bad impression on your potential employer, you can provide a general, vague number. For instance, if your current salary is $77,000, you can say, “My current salary is in the mid-seventies.”

2. Disclose a salary range

If you’ve received multiple promotions and your salary has been revised quite a few times during your recent role, you can provide a salary range. This way, you can fulfill your potential employer’s request as well as showcase your ability to add value to an organization that warrants/justifies a pay raise.

For example, if your salary was revised from $40,000 to $50,000, you can say, “I was earning up to $40,000 per year, but then my salary was revised to incorporate a raise of $10,000 to reflect additional job duties and responsibilities.”

3. Share the exact figure

You can disclose your full salary to the employer if you’re comfortable sharing this information. In this case, you can also round off your salary to the nearest whole number. For example, if your salary is $75,750, you can round it off to $76,000. Just make sure not to exaggerate the number.

 Key takeaways

1. With very few exceptions, employers are not required by law to ask a potential employee to disclose their salary. However, some organizations do ask this question on a job application or during an interview. They typically use this information to determine your new payscale. 

2. There are multiple ways you can disclose your salary. You can provide a general number, a salary range, or the exact figure - depending on how comfortable you are disclosing this information.

3. You are well within your right to respectfully refuse to provide your salary history if you’re not comfortable and it’s not legally required. No one can force you to share this information or make this a valid reason to not hire you.