Federal agencies would not be able to consider a job applicant’s salary history when setting pay for certain offers of employment under new regulations proposed by the U.S. Office of Personnel Management.
The proposed rules announced May 10 would prohibit the use of salary history in setting pay for new federal employees hired under the government’s “General Schedule” pay system, which is the predominant pay scale within the U.S. Civil Service. The use of salary history would also be prohibited in setting pay for new employees hired under the government’s “Prevailing Rate” pay system, as well as those hired under the pay systems for administrative law and administrative appeals judges.
“These proposed regulations are a major step forward that will help make the federal government a national leader in pay equity,” said OPM Director Kiran Ahuja in a statement. “Relying on a candidate’s previous salary history can exacerbate preexisting inequality and disproportionally impact women and workers of color.”
As explained in a March 2023 issue brief released by the U.S. Department of Labor, reliance on an employee’s prior salary can exacerbate pay disparities for any worker who has faced discrimination in the labor market, while research shows that implementing salary history bans can narrow the gender wage gap. Research also shows salary history bans increase wages and reduce pay disparities for workers of color compared to white workers.
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