Salary history bans shrink gender- and race-based pay gaps, researchers find

Summary

Researchers at Boston University School of Law reviewed the evidence and conclude that salary history bans — laws that prevent employers asking applicants about past pay — are associated with measurable reductions in both gender- and race-based pay gaps. The review highlights a 2024 study showing newly hired women in jurisdictions with bans received 7.8% larger salary increases than comparable hires in areas without bans. Overall, new hires in ban areas saw average pay jumps of 7.9% versus 3.9% elsewhere. Non-White workers who changed jobs in ban jurisdictions experienced roughly 7.8% wage increases and a net 5.8% gain relative to incumbent non-White employees. While some studies report smaller effects, BU Law notes those often fail to isolate the impact on new hires — the group most likely to benefit.

Key Points

BU Law literature review finds salary history bans reduce gender and racial pay gaps.
2024 study: newly hired women in ban jurisdictions had 7.8% larger salary increases than peers in non‑ban areas.
New hires overall gained an average 7.9% in ban areas versus 3.9% in non‑ban areas.
Non‑White job‑changers saw ~7.8% wage increases and a 5.8% net pay gain compared with incumbents.
Some studies show smaller effects, often because they mix new hires with other groups; BU Law argues the main benefits accrue to job‑changers and marginalised workers, with only modest efficiency costs.

Context and relevance

Pay history bans spread quickly from the late 2010s into the early 2020s; by April 2025 nearly half of US states and 20+ localities had adopted such rules. For HR, talent and compliance teams, the review indicates these laws are working toward lawmakers’ goals of reducing pay inequities. The findings are relevant to pay-setting practices, recruitment processes, pay audits and discussions about possible federal regulation or employer voluntary commitments to stop asking pay history.

Why should I read this?

Quick and blunt: if you hire people or touch pay, this matters. The review says bans actually shift pay in favour of women and non‑White workers — especially at hire — so it’s worth a skim (or a deep dive) to see whether your hiring and compensation processes need updating. Saves you the time of hunting down the studies yourself.

Source

Source: https://www.hrdive.com/news/salary-history-bans-shrink-gender-race-based-pay-gaps/805190/