Salary History Ban in North Carolina: What Employers Can Ask

Federal law does not prohibit private sector employers from asking about salary history. Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e) prohibits discrimination in compensation based on race, color, religion, sex, or national origin, but it does not restrict the use of prior salary in setting compensation.

The Equal Pay Act (29 U.S.C. § 206(d)) requires that men and women in the same position receive equal pay for equal work, but does not ban salary history inquiries. However, an employer cannot use salary history as the sole justification for a discriminatory pay differential between protected classes.

The EEOC enforces these federal laws and investigates complaints of pay discrimination. The federal baseline allows employers to consider prior salary as one factor among many in determining compensation, but this practice must not be used to perpetuate discrimination based on protected characteristics. No federal agency specifically enforces salary history bans for private employers because no such federal ban exists.

North Carolina does not have a statewide salary history ban law. The state legislature has not enacted a statute prohibiting employers from inquiring about or using prior compensation history in hiring or compensation decisions for private sector employees. This means North Carolina employers have greater flexibility than employers in states like California, Massachusetts, or New York, which have comprehensive statewide salary history bans.

However, North Carolina's Equal Pay Law (N.C. General Statute § 95-25.45) requires equal pay for substantially similar work regardless of gender. While this statute does not explicitly ban salary history inquiries, it does prohibit using salary history as a basis for creating or maintaining gender-based pay disparities. Additionally, federal anti-discrimination laws apply in North Carolina and prohibit using prior salary in ways that perpetuate discrimination based on protected characteristics.

Importantly, two North Carolina municipalities have enacted local salary history bans that supersede state law within their borders. Greensboro's ordinance (Greensboro Ordinance Code § 25-27) prohibits employers from asking about or considering salary history for positions based in Greensboro. Durham's ordinance (Durham Ordinance Code § 6-1003) similarly restricts salary history inquiries for positions in Durham.

Public sector employers in North Carolina are subject to different rules. State government and local government positions are covered by public records laws that provide greater transparency regarding compensation. North Carolina's Public Records Act (N.C. General Statute § 132-1 et seq.) makes salary information for public employees a matter of public record, reducing the need for private salary history discussions.

Under North Carolina law, employers are not explicitly prohibited from asking about salary history in most jurisdictions. However, employees are not obligated to disclose prior compensation even if asked. The absence of a statewide ban means employers can consider your refusal to disclose, though some argue this may create a chilling effect on salary privacy.

North Carolina's lack of a statewide salary history ban creates significant exceptions to protections available in other states. Employers in unregulated North Carolina jurisdictions may freely ask about and use prior salary, subject only to anti-discrimination laws. An employer may legally refuse to hire you because you decline to disclose salary history, as long as this refusal does not constitute a pretext for discrimination based on a protected characteristic.

The two local salary history bans in Greensboro and Durham contain important exceptions. These ordinances apply only to positions based in those cities; remote workers, telecommuters, or employees hired from outside those jurisdictions may not receive the same protection. Employers in Greensboro and Durham may still inquire about salary history if the applicant voluntarily discloses it first—the ban restricts employer-initiated inquiries, not employee-volunteered information.

Banked time or deferred compensation from prior employment is sometimes treated differently from salary history. Some employers argue they need information about accrued benefits to accurately calculate transition costs, though this is a debated exception even under local bans.

Independent contractors and temporary workers may receive different treatment. The local ordinances typically apply to employees, and their application to contract positions varies by how each city defines "position."

Federally-covered employers under Title VII (15+ employees) cannot use prior salary as a sole justification for paying women or minorities less, but they are not prohibited from asking about or considering salary history as one of many factors. Union collective bargaining agreements may override or supplement North Carolina law regarding compensation disclosure.

Public sector employers are exempt from local salary history bans in some interpretations, since public salary information is mandatorily transparent under state records laws. However, this exemption is state-specific and not universally recognized.

Step 1: Document Your Salary Privacy Claim. If you are applying for a position in Greensboro or Durham and an employer asks about your salary history, document the request in writing if possible—save emails, take notes of phone conversations with dates and times, and record the employer's name and position of the person who asked. If you declined to disclose and the employer subsequently rejected you without explanation, preserve all hiring communications. Keep records of job postings or job descriptions that may have indicated salary was required.

Step 2: Determine Your Jurisdiction and Applicable Rules. Confirm whether your position is based in Greensboro, Durham, or elsewhere in North Carolina. If you are in Greensboro or Durham, the local salary history ban may apply. If you are elsewhere in North Carolina, no statewide protection applies, but federal anti-discrimination laws may still protect you if the salary inquiry was used as a pretext for discrimination based on race, color, religion, sex, national origin, age (40+), disability, or other protected characteristics. Review the job posting and any communications to identify whether discrimination may have occurred.

Step 3: File a Complaint With the Appropriate Agency. For violations of Greensboro's salary history ban, file a complaint with the Greensboro Human Rights Commission at 336-373-3000 or in person at 300 North Greene Street, Greensboro, NC 27401. For violations of Durham's ordinance, file with the Durham Office of Equity and Inclusion at 919-560-4195. For federal discrimination claims (if the violation is tied to a protected characteristic), file a charge with the EEOC at www.eeoc.gov or by calling 1-800-669-4000. The EEOC intake process requires you to provide your name, employer name, type of discrimination, and date of alleged violation. You have 300 days from the alleged violation to file with the EEOC in North Carolina.

Step 4: Understand the Investigation and Resolution Process. Local agencies in Greensboro and Durham will investigate your complaint within 30-90 days, depending on the complexity of the case and caseload. The agency will contact the employer, request documents, and may interview witnesses. The EEOC conducts a more formal investigation and issues a Right-to-Sue letter, which you must obtain before filing a private lawsuit. This process typically takes 4-6 months. You will receive updates on your case status and may be asked to provide additional documentation or evidence that the salary inquiry violated the applicable ordinance.

Step 5: Consult an Employment Attorney if Necessary. If your complaint is related to discrimination tied to a protected characteristic, or if the local ordinance investigation does not yield satisfactory results, consult an employment law attorney licensed in North Carolina. An attorney can advise you on the strength of your claim, potential damages (which may include lost wages, emotional distress, and punitive damages under North Carolina law), and whether to pursue litigation in state or federal court. Many employment attorneys in North Carolina work on contingency, meaning you pay no upfront fee if you win your case.