New hire offers: Note to Recruiters or Hiring Managers

IN RELATION TO PRINCIPLE #1: NEW HIRE OFFERS

Avoid asking candidates questions about an employee’s current compensation

It’s illegal in certain states (e.g., California, Colorado)

It’s an unfair practice because it can mean that if an employee was previously under or unfairly paid, you are carrying forward that inequitable treatment. Don’t do that!

Instead, use language like:

“What are your compensation expectations?”

“This role is comped at $XXK and XX options; does that meet or exceed your comp target?”

It’s still okay to determine if there is a compensation gap between an employee’s expectations and your ability to pay, but it shouldn’t be determined by past comp

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