Salary History Ban in California: What Employers Can Ask

Federal Law: The Baseline

Federal law does not prohibit employers from asking about salary history. The Fair Pay Act was proposed but never passed Congress. However, the Equal Employment Opportunity Commission (EEOC) has stated in guidance that salary history inquiries may perpetuate pay discrimination, particularly affecting women and minorities who have experienced historical wage gaps, though this remains guidance rather than binding federal law. Some federal contractors have restrictions under Executive Order 11246 as amended, but these apply only to specific federal contract work. The EEOC enforces equal pay requirements under the Equal Pay Act of 1963, 29 U.S.C. § 206(d), and Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, but these focus on equal pay for equal work rather than prohibiting salary history inquiries themselves. Without federal law specifically banning salary history questions, employers in non-California states generally may ask about prior compensation.

California Law: What's Different

California Labor Code § 432.3, enacted in 2018 and effective January 1, 2018, prohibits employers from inquiring about an applicant's salary history. This applies to all private employers, including sole proprietorships, as well as state and local government employers. The law is significantly stronger than any federal baseline because it creates an absolute ban rather than guidance. Under § 432.3(a), employers cannot ask job applicants or recruitment agencies representing them about prior compensation history, whether verbally, in writing, or through third parties. The law also prohibits employers from relying on salary history in determining wage offers or negotiating pay (§ 432.3(b)). Employers are explicitly prohibited from screening candidates based on previous salary, even if the applicant volunteers the information. The statute covers all stages of hiring—applications, interviews, background checks, and preliminary screening by recruiters. California law goes further than many other states by protecting applicants broadly, not just current employees. Remedies include civil penalties of $100 to $10,000 per violation, payment of plaintiff's attorney fees, and costs. An applicant can bring a private right of action, and the Labor Commissioner can investigate complaints. A single applicant can face multiple violations (per question asked, per interview, per communication with recruiters). This makes California's law among the most employee-protective in the nation.

Key Numbers & Thresholds

Applies to all employers regardless of size (one or more employee). Civil penalties: $100 to $10,000 per violation. No statute of limitations specified in the statute, but claims typically follow three-year wage claim rules under California Labor Code § 205. Attorney fees and costs are recoverable by the prevailing applicant. No threshold of employees must be affected—a single applicant's complaint can trigger liability.

Exceptions & Special Cases

The salary history ban applies very broadly with minimal carve-outs. One narrow exception exists under Labor Code § 432.3(c): an employer may ask an applicant to voluntarily disclose prior salary history if the applicant has already initiated the discussion or has voluntarily offered the information without prompting. However, even if an applicant mentions prior salary, the employer still cannot rely on that information to make hiring or compensation decisions (§ 432.3(b)). Employers may verify salary history if required by law (such as for certain regulatory or security clearance positions), but even then they cannot use it as a factor in their hiring decision. The law does not exempt union employees or collective bargaining agreements. Independent contractors and interns are arguably outside the scope since they are not applicants for employment in the traditional sense, though this remains ambiguous. Once an applicant becomes an employee, § 432.3 no longer applies, but other California pay equity laws (like California Equal Pay Act, Labor Code § 1197.5) govern compensation comparisons. Employers cannot circumvent the ban by asking a previous employer directly or through background check vendors for salary information—they retain responsibility for compliance even when third parties conduct screening. There is no exception for at-will employment; the salary history ban is mandatory regardless of employment classification.

What to Do If Your Rights Are Violated

Frequently Asked Questions

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