Salary Negotiations: Should You Tell Your Prospective Employer How Much You Earned In Previous Job?

By Nicole Summer | Jan 24, 2017 09:32 PM EST

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After going through the application and the interview process, you are now called for a job offer. When it comes to negotiating your salary, employers would often ask about how much you were making in your most recent job. Should you disclose your previous pay? Can they even find out how much you really received?

Actually, there is a federal law that prohibits prospective employers from finding out what the applicant's previous salary was unless the applicant signed an authorization form allowing them to do. That is applicable in all states in the U.S. except for Louisiana, as reported by Business Insider.

In some states, though, employers cannot even ask about your previous salary. The most recent to bar employers from asking for an applicant's salary history is Philadelphia. As reported by ABC News, Democratic Mayor Jim Kenney just signed on Monday a bill on that measure, which aims to narrow the wage gap between men and women employees. Philadelphia's wage equity ordinance came after Massachusetts became the first state to prevent employers from asking their potential hires to disclose previous salaries.

On one hand, while you are protected by law to not reveal your previous salary, Amy Glaser, a senior vice president at the Adecco Staffing USA employment agency, said that it is best not lie about it. Do not even try to inflate how much you are currently earning. Instead, focus on how much you believe you deserve and what you are willing to accept. In addition, when telling about your pay, keep in mind that it should be the total compensation, including incentives and allowances.

Asking unreasonable salary demands would also put you in a bad light, especially when you're applying for a similar position. The hiring manager most likely has a knowledge about your market value based on the position you are seeking. Being honest makes things less complicated. Do not risk your credibility. When your employer finds out you were lying, you would face a termination and your record would be tarnished.

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