California Just Started Enforcing Its Salary History Ban—And Companies Are Getting Fined
For years, California's salary history ban was technically law but rarely enforced. Companies asked about previous salary during interviews, and nothing happened.
That changed in October 2025. California's Labor Commissioner announced aggressive enforcement of the salary history ban, and companies are getting hit with fines.
The first batch of enforcement actions included fines ranging from $10,000 to $100,000 per violation. And the violations? Simple questions like "What's your current salary?" during phone screens.
If your company hires in California, you need to understand what changed and how to avoid fines.
What California's Salary History Ban Actually Says
California Labor Code Section 432.3 prohibits employers from asking about salary history.
Specifically, employers cannot:
- Ask a job applicant about their salary history (including compensation and benefits)
- Ask about salary history before extending an offer
- Rely on salary history as a factor in deciding whether to offer employment or what salary to offer
What employers CAN do:
- Ask about salary expectations
- Discuss the salary range for the position being offered
- Consider salary history information if a candidate voluntarily discloses it (without prompting)
The law has been on the books since January 1, 2018. So why is enforcement happening now, seven years later?
Why Enforcement Suddenly Got Real In October 2025
California's Labor Commissioner's Office announced a "Wage Equity Enforcement Initiative" in October 2025, focusing on salary history violations and pay transparency compliance.
What triggered this:
A coalition of worker advocacy groups filed complaints documenting widespread violations. They conducted "audit tests" where volunteers applied for jobs and recorded recruiters asking prohibited questions.
California's Labor Commissioner used this report to launch investigations, resulting in the first wave of fines issued in late October 2025.
The enforcement strategy:
The Labor Commissioner is prioritizing "systemic violations"—companies whose recruiters or HR staff routinely ask about salary history, not isolated incidents.
Which Companies Got Fined (And Why)
Tech startup (San Francisco): $45,000 fine. Recruiter asked candidates "What's your current compensation?" during initial phone screens.
Healthcare system (Los Angeles): $100,000 fine. HR department required candidates to fill out forms listing previous salaries as part of the application process.
Retail chain (statewide): $75,000 fine. Hiring managers asked about previous hourly wages during interviews.
Financial services company (San Diego): $60,000 fine. Background check authorization forms included a field for "previous salary".
The common thread: These weren't isolated mistakes—the Labor Commissioner found evidence of repeated violations across multiple candidates and time periods.
What Questions Are Prohibited (And What's Allowed)
The line between legal and illegal salary questions can be subtle.
ILLEGAL (will get you fined):
- "What's your current salary?"
- "What did you make at your last job?"
- "What's your salary history?"
- "What are you currently earning?"
- Including salary history fields on application forms
- Asking for W-2s or pay stubs before making an offer
- Contacting previous employers to verify salary information
LEGAL (you can ask these):
- "What are your salary expectations for this role?"
- "What salary range are you targeting?"
- "The range for this position is $X-$Y—does that align with your expectations?"
- Disclosing the salary range for the position (and you must do this if asked)
GRAY AREA (proceed carefully):
If a candidate voluntarily discloses their current or previous salary without prompting, you can consider it. But you cannot ask follow-up questions about salary history.
Example:
Candidate: "I'm currently making $120K, and I'm looking for a step up to $140K-$150K."
Legal response: "Thanks for sharing that. The range for this position is $135K-$165K depending on experience."
Illegal response: "What's the breakdown of your $120K? Base salary, bonus, equity?"
The safest approach: Don't ask about salary history at all, even if the candidate brings it up first.
Pay Transparency Requirements Added To Enforcement Focus
What SB 1162 requires:
Employers with 15+ employees must include salary ranges in all job postings.
The Labor Commissioner is now fining companies for violations:
- Job postings without salary ranges: $100-$10,000 per violation
- Refusing to provide salary range when asked by applicant: $100-$10,000 per violation
Recent enforcement examples:
A Los Angeles tech company was fined $50,000 for posting 127 jobs without salary ranges.
How Companies Are Responding
Most California employers are scrambling to update their recruiting practices.
Common changes:
Recruiter training: Companies are retraining recruiters and hiring managers on prohibited questions. Scripts and phone screen guides are being updated to remove salary history questions.
Application form updates: Any forms requesting previous salary information are being removed.
ATS configuration changes: Applicant tracking systems are being configured to block salary history fields.
Interview process audits: HR teams are conducting audits of recent interviews to identify patterns of non-compliance.
Salary range standardization: Companies are developing clear salary ranges for all positions to comply with pay transparency requirements.
What About Remote Positions?
This means:
- Don't ask about salary history for any candidate who could work remotely in California
- Include salary ranges in job postings for remote-eligible positions
- Apply California rules even if your headquarters is in another state
Several recent enforcement cases involved out-of-state companies hiring remote California workers.
Other States With Similar Laws
California isn't alone—salary history bans exist in 21 states and multiple cities:
States with salary history bans:
- California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, Washington
Cities/counties with bans:
- New York City, Philadelphia, Pittsburgh, Cincinnati, Kansas City, Louisville, New Orleans, Salt Lake City, Albany County (NY)
However, California's enforcement is the most aggressive. Most other jurisdictions have salary history bans but minimal enforcement.
Expect other states to follow California's lead. If California demonstrates that enforcement generates revenue and creates compliance, other states will likely increase enforcement efforts.
How To Audit Your Company's Compliance
If you hire in California, conduct a compliance audit immediately:
1. Review job postings:
- Do all California-eligible postings include salary ranges?
- Are ranges realistic and accurate?
2. Audit application forms:
- Do any forms ask for salary history?
- Do background check forms request previous compensation?
3. Review interview scripts:
- Do phone screen scripts include prohibited questions?
- Are hiring managers trained on legal vs. illegal salary questions?
4. Check ATS configuration:
- Does your ATS include salary history fields?
- Can candidates be required to enter previous salary information?
5. Review recent interviews:
- Have recruiters or hiring managers asked about salary history?
- Are there documented instances of violations?
6. Train your team:
- Ensure everyone involved in hiring knows what questions are prohibited
- Provide scripts with legal alternatives
- Explain consequences of violations
The Bottom Line
For employers hiring in California:
- Stop asking about salary history—immediately
- Include salary ranges in all job postings
- Train recruiters and hiring managers on compliance
- Audit your recruiting process for violations
- Expect enforcement to continue and potentially expand
The Labor Commissioner has signaled this is a priority. Fines will continue. Companies that ignore compliance risk significant financial penalties.
Other states are watching California's enforcement. Expect similar actions in New York, Colorado, Washington, and other states with salary history bans.
The recruiting playbook has changed. Companies that adapt to pay equity laws will have an advantage. Those that don't will face fines, legal exposure, and damaged employer brands.
Sources:
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