Salary History Ban in South Carolina: What Employers Can Ask

Federal law does not ban salary history inquiries. The Equal Pay Act, 29 U.S.C. § 206(d), prohibits wage discrimination based on sex but does not restrict employers from asking about prior compensation. Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, prohibits discrimination based on race, color, religion, sex, or national origin but does not prevent employers from requesting salary history.

The EEOC enforces these federal anti-discrimination laws. While asking about salary history itself is lawful under federal law, using that information in a discriminatory manner—for example, paying a woman less based on her lower previous salary—can violate the Equal Pay Act or Title VII. The issue is not the question itself but how the information is used in compensation decisions.

Several states and cities have enacted salary history bans to prevent perpetuating wage gaps and discrimination. However, South Carolina has not adopted such legislation. Employers in South Carolina operating in states with salary history bans must comply with those restrictions for jobs located in those states, but South Carolina employees have no such protection under state law.

South Carolina has enacted no state law restricting employer inquiries about salary history. The South Carolina Code of Laws contains no provision analogous to California Labor Code § 432.3, Massachusetts General Law Chapter 149 § 24L, or similar statutes adopted in over 20 jurisdictions nationwide.

This means South Carolina employers are free to ask applicants about prior compensation, previous salary ranges, and wage history during recruitment and hiring. Unlike states with salary history bans, South Carolina imposes no prohibition on requesting this information, no requirement to disclose the employer's salary range first, and no penalty for violating such restrictions.

However, South Carolina employees retain protections under state and federal anti-discrimination law. Employers cannot use salary history in a manner that violates the Equal Pay Act (which requires equal pay for substantially equal work regardless of sex), Title VII (which prohibits discrimination based on race, color, religion, sex, or national origin), or South Carolina's own anti-discrimination statutes. The practical difference is that in South Carolina, the employer's ability to ask about salary history is unrestricted, whereas in other states, the employer cannot ask the question in the first place.

A small number of South Carolina municipalities may have local ordinances restricting salary history inquiries—candidates should verify their specific city's employment laws. However, state law provides no uniform protection across the state.

South Carolina employers face no legal exceptions to salary history inquiries because no ban exists. However, all employers must comply with federal anti-discrimination laws when using salary history in compensation decisions.

An important exception applies when federal law is implicated: if an employer uses prior salary to justify a wage differential and that wage differential correlates with a protected characteristic (such as sex, race, or age), the employer may face liability under the Equal Pay Act or Title VII. The Supreme Court decision in *Freyd v. University of Oregon* (2021) and similar cases have made clear that relying solely on prior salary can violate the Equal Pay Act if it perpetuates historical discrimination.

Employers in South Carolina who have workforce in other states with salary history bans (California, Massachusetts, Connecticut, Delaware, Florida, Illinois, Maine, Maryland, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New York, Oregon, Rhode Island, Tennessee, Vermont, Washington, and Washington D.C.) must comply with those jurisdictions' restrictions for positions based in those locations. Applicants for remote positions or positions that may relocate may fall under the stricter laws of those states.

Union employees subject to collective bargaining agreements may have contractual protections regarding salary negotiations beyond what state law requires. Additionally, certain government contractors may face restrictions under federal procurement regulations or executive orders addressing pay equity.

Step 1 – Document Everything: Keep records of all communications with the employer, including job postings, emails, phone call notes, and interview records. Document the exact date and context when the employer asked about your salary history. Save screenshots of job postings to show whether they requested salary history without disclosing their own range. Note the position, job title, department, and names of interviewers. Retain this information even after hiring, as it may be relevant if compensation disputes arise later.

Step 2 – Internal Complaint (if applicable after hire): If you were hired and later discover wage disparity, report the issue to your employer's human resources or payroll department in writing. Describe the discrepancy, the dates, and how you believe your compensation is unfair. Request a written response. This creates an internal record and may prompt the employer to review and correct the issue voluntarily. However, note that South Carolina is an at-will employment state, so internal complaints do not guarantee protection from retaliation, though retaliation for reporting wage discrimination is illegal.

Step 3 – File with the EEOC (for discrimination claims): If you believe the salary history inquiry or the resulting wage disparity is based on a protected characteristic (sex, race, color, religion, national origin, age, disability, or genetic information), file a charge with the Equal Employment Opportunity Commission. South Carolina is a deferral state; file with the South Carolina Human Affairs Commission (SCHAC) first, which has 60 days to investigate. You have 300 days from the discriminatory act to file (vs. 180 days in non-deferral states). File online at eeoc.gov, by mail at the EEOC's Columbia, SC field office, or by phone at 1-800-669-4000. Provide your name, employer name, date of hire, description of the discrimination, dates it occurred, and any witnesses. Do not delay; the 300-day deadline is strict.

Step 4 – Investigation and Conciliation: The SCHAC/EEOC will contact your employer and request a written response. The agency investigates by reviewing payroll records, job descriptions, performance evaluations, and interview notes. This process typically takes 30–180 days. If the EEOC finds reasonable cause to believe discrimination occurred, it will attempt conciliation—negotiating a settlement between you and the employer. If conciliation fails, the EEOC may file suit on your behalf or issue a right-to-sue letter, allowing you to pursue a private lawsuit.

Step 5 – Consult an Employment Attorney: Before or immediately after filing with the EEOC, consult an employment law attorney licensed in South Carolina. An attorney can evaluate whether your case involves federal discrimination claims (Equal Pay Act, Title VII), review your compensation history and job performance records, assess damages (back pay, front pay, compensatory damages), and represent you in EEOC proceedings or litigation. Many employment attorneys work on contingency for discrimination cases, meaning you pay no upfront fee if you prevail.