Salary History Laws by State: What Construction Employers Need to Know
There is currently no federal law in the United States that prohibits employers from asking candidates about their salary history. However, a growing number of states have implemented restrictions that limit—or completely prohibit—this practice. Understanding salary history laws by state is becoming increasingly important for construction companies, especially those operating across multiple regions.
For heavy civil contractors, infrastructure firms, and engineering organizations, hiring often spans state lines. That means a single hiring process could expose your company to compliance risks if your practices are not aligned with state-specific regulations.
Why Salary History Laws Exist
Salary history laws were introduced to address concerns about pay inequality. The idea is simple: if a candidate has been underpaid in the past, and a new employer bases compensation on that previous salary, the cycle of underpayment continues.
States like California, New York, and Massachusetts have taken a strong stance by restricting employers from asking about prior compensation or using it to determine a new salary offer.
As a result, employers are being encouraged—or required—to focus on what a role is worth in the current market, rather than what a candidate earned in the past.
Related: https://hcrc.us/interactive-salary-map/
Which States Have Salary History Restrictions?
While there is no nationwide ban, at least 17 states have enacted some form of salary history restriction. These include:
- California
- Colorado
- Connecticut
- Delaware
- Hawaii
- Illinois
- Maine
- Maryland
- Massachusetts
- Nevada
- New Jersey
- New York
- Oregon
- Rhode Island
- Vermont
- Virginia
- Washington
Each state law is slightly different. Some prohibit employers from asking about salary history altogether, while others allow it only after an offer has been made or if the candidate voluntarily discloses the information.
What This Means for Construction Employers
For companies in the heavy civil construction industry, these laws introduce both compliance challenges and strategic considerations.
1. Multi-State Hiring Requires Consistency
If your company operates in multiple states, maintaining different hiring practices for each location can be difficult. Many contractors are choosing to adopt a single, compliant approach across all regions to reduce risk.
2. Salary History May Not Reflect Market Value
Construction labor markets fluctuate based on demand, geography, and project pipelines. A project manager, estimator, or superintendent may be underpaid simply due to timing or location. Relying on past salary could lead to uncompetitive offers.
3. Internal Equity Matters More Than Ever
Using salary history as a benchmark can create inconsistencies within your organization. Market-based compensation structures help ensure fairness across teams and projects.
Best Practices Moving Forward
As salary history laws by state continue to evolve, construction employers should consider updating their hiring strategies:
- Focus on salary expectations, not salary history
- Use market data and benchmarking tools
- Develop clear compensation bands for roles
- Train hiring managers on compliant interview practices
Instead of asking, “What are you currently making?” a better question is:
“What compensation range would make this opportunity worthwhile for you?”
This approach keeps the conversation aligned with both compliance and candidate expectations.
Final Thoughts
Understanding salary history laws by state is no longer optional for construction employers. As regulations continue to expand, companies that adapt their hiring practices will not only reduce legal risk but also improve their ability to attract and retain top talent.
Because in today’s market, the most important question isn’t what someone made before—it’s what the role is worth today.
