The Salary History Trap

Jake is interviewing for a marketing coordinator position at TechCorp, a growing software company. He is currently earning $38,000 at his small nonprofit job but knows that similar positions at tech companies typically pay between $55,000 and $65,000. During the interview, everything is going well until the hiring manager, Ms. Chen, asks:

"So, Jake, what's your current salary?"

Jake hesitates, realizing he's in a tough spot. He knows that if he tells the truth about his current $38,000 salary, TechCorp might offer him something like $42,000-$45,000, thinking that he will be happy with an offer of a higher wage than he currently makes. The position should pay closer to $60,000, based on market rates and the actual earnings of other marketing coordinators at TechCorp. However, he does not want to lie during the interview process.

Jake knows that his nonprofit salary does not match his skills or market value, and he is concerned that revealing it could lead to a lowball offer and hurt his long-term earning potential.

Two bills were submitted to Congress in March 2025 that would amend the Fair Labor Standards Act (FLSA) of 1938. H.R. 2007 would require employers to disclose the pay range of a position to applicants. H.R. 2219 would prohibit hiring companies to ask an applicant what their current salary and benefits are.

Please discuss the following with your peers:

• In your opinion, what should Jake do in this situation?
• Is it fair and ethical for employers to base new salary offers on previous wages? Why or why not?
• How might this practice perpetuate pay inequalities across different industries or demographics?