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Businesses The Almighty Buck United States

NYC Poised to Ban Firms From Asking Job Candidates About Pay (bloomberg.com) 142

In a vote this week, the New York City approved legislation that will ban employers from asking job applicants about what they make in their current or past job and could have far-reaching consequences beyond the city as employers try to standardize their practices. From a report: "This bill will go a long way in addressing wage disparities women -- and particularly women of color -- face," said Public Advocate Letitia James, who sponsored the measure. White women in New York earn on average 84 percent of what white men earn, while Asian women earn 63 percent, black women earn 55 percent and Hispanic women just 46 percent, according to a report from the advocate's office, based on U.S. Census data. Asking about pay in a job interview hurts women who may start from a lower level than male candidates -- an effect that compounds over time. "It perpetuates discrimination," James said. "And it has an effect on their pensions as well."
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NYC Poised to Ban Firms From Asking Job Candidates About Pay

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  • by Anonymous Coward

    While I do agree that questioning pay should be banned, I really wish they would stop with the "Women get paid less than men" myth. Continuing to use it is fake news.

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      The wage gap myth is, for some reason, easy to perpetuate no matter how many times you throw facts back at it. It's a politician's, feminist's, and SJW's crutch to lean on.

  • by religionofpeas ( 4511805 ) on Friday April 07, 2017 @02:25PM (#54193715)

    Just because you don't know what someone made in their previous job doesn't mean that they'll be offered more.

    • by sinij ( 911942 ) on Friday April 07, 2017 @02:29PM (#54193773)
      Actually, this will mostly help people with gaps in employment. As a hiring manager it is fairly typical move to disqualify candidates that previously earned too much out of fear that they will leave shortly. Even if this is not the case and applicant is willing to take a pay cut to get any job.
      • by AmiMoJo ( 196126 ) on Friday April 07, 2017 @04:11PM (#54194579) Homepage Journal

        Revealing your previous salary never, ever helps you. The only things that the company can do with that information all screw you somehow.

        It's pretty normal to give this information in the UK. I've been refusing and it seems to be a useful test to filter out crap companies that aren't able to handle this situation.

        • by lgw ( 121541 )

          Revealing your previous salary never, ever helps you.

          It helps me a lot in weeding out recruiters for jobs not senior enough for me. In general, if you're making more than market, and want to stay that way, you need to talk about it. If you're making less than market, it will be used against you.

        • by Xest ( 935314 )

          You can use this to your advantage - there's no legal duty to give an accurate figure, or in fact, a figure at all. They have no right to access your past salary information to confirm anything either.

          As such, when they ask, you can just as well give an inflated figure to try and get an inflated offer.

          This is why I don't even bother asking when I hire - I just offer people's salary based on what I believe them to be worth regardless of what they ask for or claim to have been worth previously.

          • by AmiMoJo ( 196126 )

            Problem is that if they then check your references and ask what your salary was, you may get found out. They may realize you inflated the number, which around here is grounds for being sacked.

            • by Xest ( 935314 )

              They can't do that, it's illegal, it's a breach of the Data Protection Act.

              If they sack you for obtaining information that they have no legal right to obtain then you can take them to an industrial tribunal and get compensated for a small fortune and the Information Commissioner will have a substantial fine to hand out to both parties too.

              • by AmiMoJo ( 196126 )

                I don't think data protect prevents your previous employer disclosing your salary if asked directly. They may refuse of course.

                In any case, you also need to be careful with your P45. You can write to HMRC and ask them not to disclose your previous tax code to your new employer, but of course it will look pretty dodgy if you already told them your previous salary and are now trying to hide it.

                • by Xest ( 935314 )

                  No it really does - it's personal data and they have no legal basis to hand it over on a whim to another company asking for it, whatever the purpose. The days are even gone where a company can verify sickness absence records against a previous employer without your permission - they cannot in a reference even ask how much time you had off sick as it's again classed now as personal information that cannot be arbitrarily handed out.

                  The only thing an employer can do is demand you provide evidence of your prev

      • by lgw ( 121541 )

        As a hiring manager it is fairly typical move to disqualify candidates that previously earned too much out of fear that they will leave shortly.

        Lie. There's just no downside for telling a prospective employer you make less than you actually do. No one is going to be pissed at that, even if it is somehow discovered.

    • by Anonymous Coward

      Just mandate that the pay be stated upfront in the original job ad. No more trying to guess what an employer is willing to pay without going too high and ruling yourself out of the game or too low from ignorance of (secret) pay rates and ripping yourself off. Just a simple, open, honest statement of what the employer is willing to pay so you can decide upfront whether you want to apply or not.

      • by skids ( 119237 )

        No, don't you understand? Wasting everybody's time is a moral imperative. How are we supposed to live with ourselves if we don't make people spend over an hour paging through tens of websites to buy a widget? And for a job applicant? You gotta make sure they wear out at least one keyboard before they get in the door.

      • by ShanghaiBill ( 739463 ) on Friday April 07, 2017 @04:04PM (#54194531)

        Just mandate that the pay be stated upfront in the original job ad.

        When I advertise for a "programmer", I usually don't have a specific salary in mind. If one applicant is more capable than another, then I will offer more. If I put a low salary range in the ad, the better candidates will not apply. If I put a high range, then I will be flooded with responses from lousy candidates that are not even remotely qualified for that salary.

        • by tlhIngan ( 30335 )

          When I advertise for a "programmer", I usually don't have a specific salary in mind. If one applicant is more capable than another, then I will offer more. If I put a low salary range in the ad, the better candidates will not apply. If I put a high range, then I will be flooded with responses from lousy candidates that are not even remotely qualified for that salary.

          The problem is the employer-employee relationship is asymmetrical. The employer has all the power.

          In your case, you should have a range of sala

          • To argue otherwise is disingenuous.

            Nonsense. One programmer can be ten times as productive as the average programmer. Plenty of programmer are less than one-tenth as productive as the average. When I run an ad, I just don't know the range of candidates I am going to get. If I realize I am interviewing a superstar, then I will make a much higher offer, and I don't want to dissuade the best applicants from applying by (falsely) indicating a fixed salary. I am also often willing to take a chance on a bright self-taught kid, but I don't wan

          • The problem is the employer-employee relationship is asymmetrical. The employer has all the power.

            Only if there's a large pool of other good candidates available. I've seen employers spend 4 months interviewing candidates until they finally get someone with proper skills. I've also been that candidate, and I got hired with a 100% pay raise compared to previous job.

          • The problem is the employer-employee relationship is asymmetrical. The employer has all the power.

            That's not true at all.
            If you're competent, there are plenty of companies that want to hire you. The employee is therefore free to work with whatever employer he prefers, based on what the role, compensation or other perks are.

        • by Xest ( 935314 )

          As long as you put some kind of range in that's genuine no matter how broad then that's all that matters.

          When I see a job ad listing with salary as "neg." I read it as "negligible", because that's usually what they mean. I don't even waste my time, usually "negotiable" is code for "We're not going to publish a figure because it's so low, no one would apply, so instead we'll trick them into calling us so that we can try in vain to convince them as to why they should take our role for fuck all money".

  • by Anonymous Coward
    There is no need for government to insert itself into a market driven process during a salary negotion between a potential employer and employee. The employee is free to lie about past salaries (no employer will ever release this information). This is yet another example of government overreach and I'm pretty sure the Trump team will crush this under their heel once they hear about it.
    • There is no need for government to insert itself into a market driven process during a salary negotion between a potential employer and employee.

      History shows this to be sometimes false. Often true, yes, but sometimes government needs to step in.

      Usually it isn't individual workers who take actions, it is a group. They form a group called a labor union, and they negotiate wages for the group. Sometimes the government does need to get involved in those cases where the disputes are large. In those cases government needs to step in when the disputes get out of hand.

      Unions have issues, the highest top performers tend to lose some negotiating power, b

  • by bluefoxlucid ( 723572 ) on Friday April 07, 2017 @02:27PM (#54193733) Homepage Journal

    I'm working at a business with low pay--where the average for a programmer is $96k here, programmers make $74k. The same is true of most IT staff, running a good 20%-30% short of the industry median.

    We're also fairly diversified and have chicks and people from all over the world in our staff, and have had folks who speak Russian or obscure Indian dialects as a primary language in prominent technical positions. They're also poorly-paid, although near as I can tell we all have about the same salary.

    It seems like a form of posturing: we don't want to pay salaries, so we create a perception of ... something. We're a good place to work because of something something benefits diversity open-door-policy.

    Are these studies by industry, region, experience, and business? Do we say that black women earn 55% as much as white men, or do we say that black women at business X in job Y earn 55% as much as white men in business X at job Y? What happens if business X mostly hires white men for job Y, and business X' hires a higher proportion of black and asian women for job Y but also pays like shit even if you're a white man?

    • by m00sh ( 2538182 ) on Friday April 07, 2017 @02:50PM (#54193943)

      I'm working at a business with low pay--where the average for a programmer is $96k here, programmers make $74k. The same is true of most IT staff, running a good 20%-30% short of the industry median.

      We're also fairly diversified and have chicks and people from all over the world in our staff, and have had folks who speak Russian or obscure Indian dialects as a primary language in prominent technical positions. They're also poorly-paid, although near as I can tell we all have about the same salary.

      It seems like a form of posturing: we don't want to pay salaries, so we create a perception of ... something. We're a good place to work because of something something benefits diversity open-door-policy.

      Are these studies by industry, region, experience, and business? Do we say that black women earn 55% as much as white men, or do we say that black women at business X in job Y earn 55% as much as white men in business X at job Y? What happens if business X mostly hires white men for job Y, and business X' hires a higher proportion of black and asian women for job Y but also pays like shit even if you're a white man?

      That doesn't work. Recruiters will successfully poach someone getting underpaid or unhappy. So, it seems like you're unhappy about getting underpaid.

      Competition is why people earn what they earn what they earn. Your employer cannot get away with paying you $x when employer B will pay you $(x+y). At a statistical level, maybe race and gender matters but on a personal level there are too many variations [bbc.com].

      • We used to have a revolving door, but I'm working with coworkers who have mostly been here for 3-5 years now. They're all cognizant of the market; we regularly talk about how we can't hire additional people because we pay way below market rates--which includes our pay, considering some of us have been offered 80% pay increases at other jobs doing the same shit.

        Some of us are stable. Others just don't care to deal with a job change. A few thought the job would be interesting and now are afraid of jumpi

    • by ShanghaiBill ( 739463 ) on Friday April 07, 2017 @02:53PM (#54193971)

      If you pay less, you get less. I worked for a company that had about 20 programmers making $30k in the heart of Silicon Valley. How did we do it? We hired kids straight out of high school and trained them as code monkeys, to whip up Javascript or throw-away Perl scripts. Most of our projects were quick one-off stuff, and when we did need to maintain something for the long term we had one of our "real" programmers clean it up. This actually worked amazingly well, and the company was profitable for years. I kept in touch with many of those kids, and most of them went on to successful tech careers, and one of them even got a PhD from Stanford.

  • What about the First Amendment?
    • Female candidates are about to become a protected class...

      • Female candidates are about to become a protected class...

        They already are. You can't ask about gender during the interview process. It is usually obvious when a candidate shows up for the interview, but it isn't always obvious during the screening process, especially with a name like Pat or Chris. You also cannot ask about pregnancy, marital status, number of children, or future childbearing plans, which are all issues that disproportionately affect women.

        Several women have told me that they removed their wedding rings before job interviews.

    • >> What about the First Amendment?

      You are green, grasshopper. Look up "protected classes" and then do some research on the hoops HR and interviewers have to jump through to avoid being sued. Long story short, there's not much "first amendment" left if you're a company/target of any size.
      • Oh, there is plenty of "wiggle room" for creative hiring questions that expose weaknesses in "protected class" applicants. It is just a riduculous hurdle to jump over, and does nothing to stop anything.

        "We like our employees to _________, are you willing?" Where _______ is an innocuous question on the surface, but also lets you know the answer to a forbidden question by assumption.

        Prohibited speech doesn't solve the problem to someone who is determined. It just makes it harder to have legitimate questions a

  • Why do they care? (Score:4, Insightful)

    by Anonymous Coward on Friday April 07, 2017 @02:28PM (#54193755)

    I've never understood why someone's current salary is important to an employer. A job pays what the job is worth and the skill set the candidate brings to the table. It should not pay based on what someone is currently making as there is no relationship.

    • by Anonymous Coward

      It sets a low bar. Employers generally want to pay as little as possible, so if they know how low a candidate is willing to go, they can offer only a marginal raise above that level.

      • by skids ( 119237 )

        Prediction: employers who yell the loudest about this restriction will be the ones with the most aggressive market-segregation strategies preventing you from getting a simple or even ballpark price quote without extensive interaction with a VAR partner.

      • It sets a low bar.

        It is only looking at once part of the equation. I voluntarily took a pay cut with my current job. I figure not having any after hours responsibilities and getting 7 weeks annual leave each year more than made up for that.

        You lose a LOT of context just by asking about salary.

    • by Anonymous Coward

      They ask because information is power. They now know what your basis for negotiation is while you don't know theirs. If you number is well below what they were thinking they'll low-ball you. If it is too high they'll still offer what they were going to. It's the same reason some places I've worked asked you not to discuss raises with co-workers. The less information you have to benchmark the better position the company is in.

    • Because there's generally a pay range for that position. It's actually pretty rare for an open position to be something like "$90K a year, no wiggle room". It's more likely to be something like "$80-95K a year, depending on experience".

      And if they know you were making, say, $75K at your last job, maybe they'll offer you something in the lower range, because while it's still more money to you, it's less money that they have to offer.

    • Duh.

      E.g. If I'm willing to pay $80k for the position, but I know you make $60k and I offer $70k you will probably take it as it's an increase for you and I pocket the $10k difference because you have 0 way of knowing how much I'm willing to pay to start with.

      That's why ALL interviewers ask this question EVERYWHERE and will not proceed with interviews without this information unless prohibited by law.

    • A job pays what the job is worth and the skill set the candidate brings to the table.

      The problem is that a job interview only gives a very tiny peek into that "skill set". At my company, a candidate programmer will spend several hours writing code, and that is a good measure of their ability to write a 50 line function. But it is NOT a good measure of their ability to troubleshoot and patch a system with 200,000 lines of code written by semi-competent people that left five years ago.

      Disclaimer: I never ask "What was your previous salary?" because that just encourages lying. Instead I as

  • If so, then the bias will be reintroduced, unless the applicants do their homework ahead of time an ask for the higher salary.
  • by captaindomon ( 870655 ) on Friday April 07, 2017 @02:31PM (#54193803)
    So what? Pay negotiations still want to happen. "I can't ask you what you make now. Ok, next question: Is our offer of $100k acceptable? No? What would you consider an acceptable offer?"
    • by Anonymous Coward

      That's how it should happen.

      • by Areyoukiddingme ( 1289470 ) on Friday April 07, 2017 @03:05PM (#54194085)

        That's how it should happen.

        And that's definitely not how it happens. Businesses by and large no longer negotiate. At least, big businesses. They know what they're going to pay and that's it. There is no discussion. If you ask for more, they will simply say no (speaking from experience). HR has a schedule: job title X with Y years of experience and Z tenure gets salary Alpha, and that's an end of it. They do this specifically to avoid discrimination lawsuits. If women in the company have lower average salaries than men, it's invariably because they have y experience, where y < the Y the men have.

        • by Altus ( 1034 )

          I work for a very large organization here and I had no problem negotiating with them and getting what I wanted pay wise

          • I work for a very large organization here and I had no problem negotiating with them and getting what I wanted pay wise

            Usually what you're negotiating in that circumstance is for the job title that pays what you want. So you're a Software Developer III instead of a Software Developer II. You'd better believe that you're making the same $Alpha that every other Software Developer III makes from your employer.

            • by Ryn ( 9728 )
              Not even close to being true. Having been a manager and having had access to salary information for all of my directs, the swings in salary were WILD. To a point that one guy I promoted to SW3 had to get a 30% raise just to get to the bottom end of the range.
        • funny... I've only worked for very large companies that would be on top employer lists and every single time I've been able to negotiate salaries, both changing shops and internal transfers to new companies I negotiated salary. And it's not like I was senior in any of these roles.

          granted, if you aren't willing to say no to a company (or at least look like you are willing to say no), then you won't have any negotiating power.

    • by Luthair ( 847766 )
      You could have pay tiers and place people in them based on their experience. If the criteria is objective then it hopefully doesn't favour anyone. From what I can tell Canadian Government positions try to do this.
  • bullshit (Score:2, Funny)

    by argStyopa ( 232550 )

    "Asking about pay in a job interview hurts women who may start from a lower level than male candidates -- an effect that compounds over time."

    Really?
    You're telling me WOMEN have never heard of 'lying'?

  • "...Asian women earn 63 percent, black women earn 55 percent and Hispanic women just 46 percent."

    Reading this, it seems that racial discrimination is a larger problem than gender discrimination.

    Unfortunately, it's no easier to hide skin color than it is gender. Regardless, all forms of discrimination should end.

    • On that point, if you reverse the scenario, the few Hispanic women that can be found in Asia probably make a lot more than Asian women.

      And it isn't the fact that Hispanic women are more favored in Asia. It's just the fact that if you (or your family) crosses an ocean to get somewhere, you're probably way ahead of the curve in terms of wealth, connections, or education than the poor local illiterate girl who comes from a local farming family, or the local slums, of an adjacent country.

      • if you (or your family) crosses an ocean to get somewhere, you're probably way ahead of the curve in terms of wealth, connections, or education

        I can't speak for Asia, but I do know that those in Latin America who are well-off generally don't want to leave for the US. This partly explains why Latin-American food in the US is so bad: those who can cook well stay in their own country because they can make plenty there.

    • Sure, go find a maid or a manicurist who doesn't speak English the next time you need you need medical treatment or other professional consulting, discriminating against people on the basis of intelligence and qualifications is not just. You're not even thinking about the meager wages that mentally disabled people get because you are so full of hate!
  • by xxxJonBoyxxx ( 565205 ) on Friday April 07, 2017 @03:06PM (#54194099)
    Sorry - I've only ever worked for private companies in the tech industry for the past twenty years. What is this "pension" you speak of?
    • A job benefit many people used to have but that will certainly not be part of the current "Great Again" makeover.

    • Something mandatory in most of the world regardless of who you work for and even if you work for yourself.

  • by PPH ( 736903 )

    ... this means we won't get to look at Trump's tax return?

  • Big deal.

    Get back to me with numbers based on Group X makes Y% of Group Z for the same job description and experience level and then we can start to worry about corrective measures.

  • "It perpetuates discrimination," James said. "And it has an effect on their pensions as well."

    Now I know they're blowing smoke up my ass. Pensions? What pensions? I've heard of this mythical beast. I've never seen it. Boomers got pensions. I'm Gen-X. The pensions were gone, gone gone by the time I entered the workforce.

    • Re: (Score:2, Informative)

      by Quirkz ( 1206400 )

      I think they meant it as a general term for "retirement"; if you don't fixate specifically on pension in the traditional sense, it's a true statement. If they're contributing x% of a lower salary, that's worse than x% of a higher salary. If there's a company match, it's a function of salary as well.

      • >"If there's a company match, it's a function of salary as well."

        Um, no. Most employers around here, including mine, match a flat amount of DOLLARS and has nothing to do with % of pay.

        • by Quirkz ( 1206400 )

          Hm. I don't know where "here" is for you, but I stand partially corrected. I've only ever heard of percentage matches, and never encountered or heard of a dollar match. But you learn something every day.

          • That is because many employers frame it as, for example, "We will match your contribution up to 6% of your total pay per year." Some employers will then go further and then mention a hard limit dollar amount that they won't go beyond when matching contributions.

        • by PPH ( 736903 )

          And that's all a part of your negotiable compensation package.

    • hm..... I'm millenial (at the cut off) and every company I've worked for offered a pension. it's quite the hassle actually, given that I have partial pension gains across 4 distinct companies. the US resident employer offered me 401k and a pension, which just made it all a bit weird (major US bank).

  • Pensions?
  • Pass a law that requires all employers to cut all white men's pay by 50%, white women's by 40%, asian women's by 30%, etc, so all groups on average make exactly the same money. Problem solved, full equality for all! Only racist misogynists could possibly disapprove.

  • If this law, enjoins me as a private individual from saying the words "What did you make at your last job?" then it is a violation of my right to free speech. But because the magic word "employer" gets tacked on to me, it's suddenly OK to deny me the right to say those same words to another adult? Communism FTW!

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