Salary History Ban in Alabama: What Employers Can Ask

Federal law contains no prohibition on salary history inquiries. The Fair Pay Act, 29 U.S.C. § 206 et seq., and Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, do not restrict employers' ability to ask about prior salary. The EEOC and Department of Labor do not enforce a federal salary history ban.

However, several states and municipalities have enacted salary history bans in recent years. These are state and local initiatives, not federal law. At the federal level, salary history inquiries are lawful unless they are used as a pretext for wage discrimination based on a protected characteristic (race, color, religion, sex, national origin, age, or disability). An employer could theoretically face a Title VII or Age Discrimination in Employment Act (ADEA) claim if salary history is used to perpetuate historical discrimination, but the inquiry itself is not prohibited.

The federal approach is permissive: employers may ask, and workers may decline, but the inquiry itself creates no federal liability.

Alabama has enacted no state-wide salary history ban. Alabama Code Title 25 (Labor and Industry) does not contain any statute prohibiting employers from requesting salary history, comparing job applicant salaries to prior compensation, or basing offer decisions on prior salary information.

Alabama's employment law framework is generally employer-friendly on this issue. Unlike California (which banned salary history inquiries in 2017 under Government Code § 432.3), Illinois (820 ILCS 70/1 et seq.), Massachusetts (M.G.L. c. 149, § 24L), and many other states, Alabama offers no statutory protection. This means employers operating in Alabama face no state-level restriction on asking about salary history.

However, this does not mean Alabama workers have no protections. Several Alabama municipalities have enacted local salary history bans. Most notably, the City of Birmingham passed an ordinance restricting salary history inquiries for City of Birmingham employment and potentially private employers within the city. Other municipalities may have similar rules. Local ordinances are enforceable against violations, but state agency enforcement is limited.

At the state level, Alabama prohibits wage discrimination on the basis of protected characteristics under common law and does not require equal pay for equal work absent a federal mandate. Salary history inquiries are not inherently illegal in Alabama unless they are used as a mechanism to discriminate based on race, color, religion, sex, national origin, age, or disability—which would violate federal law, not state law.

Alabama law contains no state-wide salary history ban, so exceptions do not apply at the state level. However, the following situations are relevant:

At-will employment status: Alabama is a strict at-will employment state. Absent a written contract or collective bargaining agreement, employers may terminate employees for any reason not prohibited by law. An employer may decline to hire a candidate who refuses to disclose salary history, and this refusal is not unlawful under state law.

Municipal ordinances: Exceptions depend on your city or county. The City of Birmingham's ordinance may contain exceptions for certain job categories, government employees, or positions above a salary threshold. Review your local ordinance carefully.

Federal discrimination law: If salary history inquiries are used as a pretext for discrimination based on protected characteristics (race, color, religion, sex, national origin, age, disability), the inquiries may violate federal law (Title VII, ADEA, ADA). However, this is a federal exception, not a state exception. The conduct must be discriminatory on its face or in application.

Confidentiality agreements: Salary history is often considered confidential. An employer may restrict employee discussions of pay, but asking a job candidate about prior salary is not the same as requiring secrecy; in fact, confidentiality rules may not apply to external inquiries.

Union or collective bargaining agreements: If employment is governed by a union contract, the contract may restrict salary inquiries. This is an exception under contract law, not state statute.

Public sector employment: Alabama state and local government employees may have additional protections under civil service rules, merit system requirements, or specific government employer policies.

Step 1: Document the salary history inquiry. Write down the date, time, location, and exact words the employer used when asking about your salary history. Note who asked (hiring manager, HR, recruiter) and the medium (phone call, email, in-person interview, online form). If an email was sent, save it. If asked verbally, write a contemporaneous summary. If you were asked to complete an online application form with salary history fields, take a screenshot or print the form. Keep all communications related to the inquiry.

Step 2: Determine whether a local ordinance applies. Check whether your city or county has enacted a salary history ban. Search '[Your City] salary history ordinance' online or contact your city HR department or city clerk's office. Read the ordinance to determine whether your employer is covered (some apply only to city employment or public contracts; others apply broadly to private employers). If you work for a city contractor or have applied for a city job, local rules are more likely to apply. If no local ban exists, proceed to federal options only.

Step 3: Decide whether to file a complaint. If a local ordinance applies and was violated, file a complaint with your city's HR, civil rights, or labor department (name varies by municipality). If the inquiry was used as a pretext for discrimination based on race, color, religion, sex, national origin, age, or disability, file a federal EEOC charge. For federal claims, file with the EEOC's Birmingham Area Office (address: 1900 Third Ave N, Suite 101, Birmingham, AL 35203; phone: 205-212-2100; website: www.eeoc.gov). The deadline is 180 days from the date of the discriminatory conduct. You do not need an attorney to file; the EEOC accepts charges filed by the individual. Provide your name, contact information, employer name and address, date of the incident, description of what happened, and explanation of why you believe it was discriminatory (e.g., 'Employer asked me about salary history only because I am a woman, but not male candidates').

Step 4: Understand the investigation process. If you file a local complaint, the city will assign an investigator who will contact the employer for a response, may interview witnesses, and will gather documents (job postings, other applicants' applications, hiring records). Investigation timelines vary by municipality but typically range from 60 to 120 days. The city will issue a determination: either the ordinance was violated, or it was not. If violated, remedies may include a cease-and-desist order, back pay (if you were not hired due to the violation), attorney's fees, or civil penalties. If you file an EEOC charge alleging discrimination, the EEOC will investigate similarly, typically over 60 to 180 days. The EEOC will issue a Determination Letter either finding discrimination or finding no discrimination. If discrimination is found, the EEOC may attempt conciliation (settlement negotiation). If no settlement occurs, you have the right to sue in federal court.

Step 5: Consult an employment attorney if the violation is serious or if you were not hired or were terminated following the inquiry. An employment attorney can evaluate whether the salary history inquiry was part of a pattern of discrimination, whether local or federal law was violated, and what damages you may recover (lost wages, emotional distress, punitive damages, attorney's fees). Contact the Alabama State Bar (205-254-2000 or alabar.org) for a referral to an employment law attorney. Many offer free initial consultations. If you cannot afford an attorney, contact Alabama Legal Help (alabamalegalhelp.org) or your local legal aid society.