In Indiana, the question of whether a new employer can ask about your previous salary remains a significant topic as pay equity advocates push for legislative reform. Unlike many states that have enacted salary history bans to prevent employers from requesting or relying on past compensation information during the hiring process, Indiana currently has no statewide law prohibiting this practice. Employers in Indiana are legally allowed to inquire about an applicant’s salary history and use it as part of their decision-making process. However, this lack of regulation has sparked ongoing debates about its role in perpetuating wage gaps, particularly for women and minorities. As surrounding states adopt salary history bans and pay transparency laws, Indiana remains a focal point for discussions on fair hiring practices and equal pay.
What Are Salary History Bans?
Salary history bans are laws that prohibit employers from asking job applicants about their current or previous salaries. These bans aim to address wage inequality by preventing past compensation from influencing future earnings. The logic behind these laws is straightforward: relying on salary history can perpetuate pay disparities, especially for women and minorities who historically earn less than their counterparts.
Key features of salary history bans include:
- Prohibiting questions about an applicant’s past compensation during interviews or on job applications.
- Restricting employers from using known salary information to determine pay.
- In some cases, requiring employers to disclose salary ranges for open positions.
Does Indiana Have a Salary History Ban?
As of now, Indiana does not have a statewide law banning employers from asking about previous salaries. This means that employers in the state are free to request salary history information during the hiring process. They can also use this information to set compensation levels for new hires.
While there have been efforts to introduce salary history bans in Indiana, such as House Bill 1031 proposed by Representative Sue Errington in 2022, these initiatives have not gained sufficient traction. Advocates argue that such legislation is crucial for promoting pay equity and reducing wage gaps, but opposition from business groups has slowed progress.
How Does Indiana Compare to Other States?
Indiana’s lack of a salary history ban stands in contrast to many other states that have implemented such regulations. For example:
- California: Employers cannot ask for or rely on salary history when determining pay.
- Illinois: Employers are prohibited from requesting past compensation but can ask about salary expectations.
- New York: Employers cannot inquire about or use an applicant’s wage history at any stage of the hiring process.
Even neighboring states like Ohio have seen individual cities, such as Cincinnati and Toledo, enact local ordinances banning salary history inquiries. These laws reflect a growing trend across the U.S. toward greater pay transparency and fairness in hiring practices.
Why Salary History Bans Matter?
The absence of a salary history ban in Indiana raises important questions about fairness in the hiring process. Here’s why these bans are significant:
- Reducing Wage Gaps
Women and minorities often enter the workforce earning less than their peers due to systemic inequalities. Using past salaries as a benchmark for future pay perpetuates these disparities. - Encouraging Fair Compensation
Salary should be based on the value of the role and the candidate’s qualifications—not their previous earnings. - Promoting Transparency
Salary history bans encourage employers to establish clear pay scales and focus on market-based compensation rather than individual negotiation power. - Improving Hiring Practices
By removing questions about past pay, employers can create a more equitable interview process that prioritizes skills and experience over financial background.
What Can Job Seekers in Indiana Do?
If you’re applying for jobs in Indiana and are concerned about being asked about your previous salary, here are some tips:
- Know Your Rights
While there’s no law prohibiting these questions in Indiana, you’re not obligated to disclose your salary history if you’re uncomfortable doing so. - Redirect the Conversation
If asked about your past earnings, try steering the discussion toward your salary expectations or market research for the role. - Research Market Rates
Use tools like Glassdoor or Payscale to understand what similar positions pay in your area so you can negotiate confidently. - Advocate for Transparency
Ask potential employers if they have established pay ranges for the position you’re applying for—this shows initiative and helps set clear expectations.
Efforts Toward Pay Equity in Indiana
While Indiana has yet to adopt a statewide salary history ban, advocacy groups continue to push for legislative changes aimed at promoting pay equity. Representative Sue Errington has introduced multiple bills addressing this issue, including proposals requiring employers to disclose wage ranges upon request and prohibiting reliance on past salaries during hiring decisions.
These efforts align with broader trends across the U.S., where states are increasingly recognizing the importance of fair hiring practices in closing wage gaps. Although progress has been slow in Indiana, growing momentum around these issues suggests that change could be on the horizon.