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Question: When pay transparency laws forbid employers from asking my salary history, how can I negotiate the best possible salary offer, whether the salary range is listed or not?

Answer: I recently addressed a similar question about how to respond to salary inquiries in an interview, but negotiating for the best possible salary for a position in a state or municipality with pay transparency laws requires a more nuanced approach. Pay transparency laws vary, with some combination of requiring employers to list the salary range in job ads, forbidding employers from asking about applicants' salary history, and specifying conditions for confirming one's past wages. How you prepare yourself for salary negotiations in this situation differs from when the salary range is not published. Nonetheless, knowing the prevailing wages offered in the market, how your skills stack up against others, and what the laws are in your jurisdiction will all position you for negotiation success.

Pay transparency laws were designed to increase fairness in the selection process, ensuring that employers do not undercut employees in salary offers, particularly in cases where research and patterns of discrimination have been found that such practices disadvantage certain groups. When a salary range is not listed, an employer may potentially pay a new employee significantly less or more for the same job, even if the candidate has nearly identical experience to others. While this could be a shrewd budget-saving measure, it is unjustifiable and discriminatory when it is directed toward individuals based on their race, gender, or other protected class status. As an example, decades of research have consistently shown that women earn substantially less than men for similar work. Given findings like this, pay transparency laws are warranted.

Similarly, some organizations use a person's current pay as a starting point for a salary offer, and many public entities have historically adopted this policy by setting wages at a percentage above one's current wages. Doing so is likely advantageous to the employer, yet it can unintentionally perpetuate salary inequities. Indeed, many people leave employers who undervalue their contributions, and moving to another employer is a way to secure more favorable compensation and receive the recognition they deserve for their capabilities. If future compensation ignores one's talent, experience, and potential and is based primarily upon their current compensation, this undermines the goal of fairness. For this and similar reasons, many municipalities and states have passed legislation that forbids employers from asking someone their current salary and using the information to set their future pay rate.

While more pay transparency is a positive trend, it does bind some negotiation variables. For example, when a range is not listed, one can comfortably ask for the salary they want, as there is no perceived ceiling. Practically, when an employer has budgeted and expects to pay between $80,000 and $100,000, but did not list it, they may be willing to consider the $111,000 salary request from an exceptionally qualified applicant. However, if the range had been published, they could fear being unfair to other exceptional candidates who would have applied if a higher range or no range had been listed. For the candidate, it would be somewhat foolish to ask for $111,000 when they are aware of the previously published range. The caveat here is that while pay transparency laws are wholly positive, fair, just, and long overdue in a society that values equal treatment for similarly situated people, pay transparency is not a panacea.

Additionally, a published salary range does not mean that the range is good, fair, or within the average market range for similar work at other employers. For this reason, it is still incumbent upon the applicant to conduct some research and have a general idea of the prevailing wages for the job, thereby positioning themselves well for eventual salary negotiations. If an employer's salary range is higher than average, there is less to worry about. If their range is lower, then it will require the applicant to make an argument for why an offer at the top of that range is warranted. In this case, the argument can be presented in two ways. First, the candidate can share what they have learned about the marketplace to acknowledge and establish that the range is low as a point of reference. Second, they can argue that their knowledge and experience are better than average, and therefore, they should be at the very top of the low salary range.

Whether a salary range is known or not, knowing the context is indispensable. This context encompasses laws regarding pay transparency, the average market salary range for similar positions, and how one's experience compares to that of others. Those with a few years of experience in a particular type of work will likely command a lower salary than those with many years of experience and, therefore, would expect to receive a salary offer in the first or second quartile of a range. Those with extensive experience or exceptional talents and successes can expect to earn above the midpoint of a salary range. A bit of homework on the laws governing pay, some research on pay ranges, and some self-reflection and earnest assessment of one's skills and experiences compared to others help one prepare for effective salary negotiations in all circumstances.

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