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Is It Legal to Pay Some Employees Less Based on Salary History?

Asking about salary has been one of the most common questions on just about every employment application. And in some jurisdictions, it must now be a thing of the past. In efforts to eliminate the wage gap between male and female employees, some cities and states have made past salary inquiries illegal and some courts have banned them as well.

But the Ninth Circuit Court of Appeals recently ruled that employers can pay women less than men if that difference is based on salary histories as long as the reasons behind using the prior salary effectuates a business policy and the employer uses prior salary reasonably. What does that mean for your small business?

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