California salary history ban: Labor Code 432.3 for recruiters
On this page
California bars every employer, of any size, from asking a job applicant about current or past pay, whether the employer asks directly or "through an agent," and from relying on that history to decide whether to hire someone or what to offer. The rule is Labor Code section 432.3. It is one of the few bans that also says what happens when a candidate volunteers a number unprompted: the employer may consider it. For a recruiter, the practical rule is simple. Do not ask, do not go looking for it, share the pay scale, and ask what the candidate expects.
Not legal advice. This page summarizes Labor Code 432.3 as published on the official California Legislative Information site and the Labor Commissioner's guidance, as of October 2026. Check the current text and get advice from a California employment lawyer before relying on it for a specific decision.
The statute
The ban is in Labor Code section 432.3, most recently amended by SB 642 (Stats. 2025, ch. 468), effective January 1, 2026. The two core sentences:
- 432.3(a): "An employer shall not rely on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant."
- 432.3(b): "An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment."
The same section holds California's pay scale rules: the range on request, the range in postings for employers with 15 or more employees, and the records duty. Those are covered in our California pay transparency guide. This page is about the history question.
Who is covered
- Every employer. Section 432.3(g) says the section applies to all employers, including state and local government employers and the Legislature. There is no headcount threshold for the salary history rules.
- Recruiters and agencies acting for an employer. The words "personally or through an agent" in 432.3(b) mean an employer cannot get the number by having a recruiter, staffing firm or search partner ask. The Labor Commissioner's Equal Pay Act guidance repeats the agent language. Treat any question you ask on a California client's behalf as the client asking.
- External applicants only. Section 432.3(m)(2) defines "applicant" as an individual who is seeking employment with the employer and "is not currently employed with that employer in any capacity or position." An internal transfer or promotion candidate is outside the history rules.
The statute does not say how it applies to an out-of-state employer hiring a California resident. The safest reading for a recruiter is to apply the rule whenever the candidate or the job is in California.
What is banned and what is allowed
| Situation | Rule | Where it comes from |
|---|---|---|
| Asking "what are you making now?" on a screen, form or interview | Banned | 432.3(b) |
| Asking about past bonuses, benefits or equity value | Banned: "salary history information, including compensation and benefits" | 432.3(b) |
| Asking a former employer or reference what the candidate earned | Banned, as seeking the information through others | 432.3(b) |
| Using pay history to screen out or set the offer | Banned | 432.3(a) |
| Pay history that is public under the Public Records Act or FOIA (for example, a public-sector salary) | Outside the section | 432.3(f) |
| Candidate volunteers their salary without prompting | Allowed for the candidate to share, and the employer may consider or rely on it in setting salary | 432.3(h), (i) |
| Asking "what are you looking for in this role?" | Allowed | 432.3(j) |
Two cautions about the volunteered-number exception. First, it applies only when the disclosure is voluntary "and without prompting." A question like "what would it take to get you to move?" that invites the candidate to quote their package is prompting. Second, section 432.3(k) says that, consistent with Labor Code 1197.5, nothing in the section "shall be construed to allow prior salary to justify any disparity in compensation." If an offer built on a volunteered number later sits below a colleague doing substantially similar work, prior salary is not a defense. That is why most teams treat the exception as a safety net for the candidate's choice to share, not as permission to use the figure.
How it works with California's pay scale rules
The history ban and the pay scale rules are designed to replace one number with another. Instead of anchoring on what the candidate earned, the conversation anchors on the range. Under 432.3(c), an applicant can ask for the pay scale on reasonable request, and an employer with 15 or more employees must put it in every job posting, including postings made by a third party it engages. SB 642 defined the pay scale as "a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire."
For a recruiter, that means the range should be on the table before pay comes up. If the posting has it, say it on the first call; if the client is small and has not posted one, the candidate can still ask, and you should have it ready. See how recruiters answer candidate salary questions for the follow-ups candidates ask once they have seen it.
Enforcement and penalties
- Labor Commissioner complaint. A person who claims to be aggrieved may file a written complaint with the Labor Commissioner within one year after learning of the violation (432.3(d)(1)).
- Civil penalty. On finding a violation of the section, the Labor Commissioner may order a civil penalty of $100 to $10,000 per violation, considering the totality of the circumstances, including prior violations (432.3(d)(4)). The first-violation waiver in that paragraph applies only to the pay scale posting rules in subdivision (c), not to a salary history violation.
- Lawsuit. An aggrieved person may also bring a civil action "for injunctive relief and any other relief that the court deems appropriate" (432.3(d)(2)).
Each screen where a recruiter asks the question is a potential violation, so a habit repeated across a desk can add up quickly.
San Francisco adds its own ordinance
San Francisco has a separate Consideration of Salary History ordinance, administered by the city's Office of Labor Standards Enforcement. According to the city's guidance page, it prohibits employers from asking applicants about current or past salary and from considering it in hiring or pay decisions, and it also bars an employer from disclosing a current or former employee's salary history without that employee's authorization unless the history is publicly available. The last point matters when a San Francisco employer takes a reference call from another company. Employers must also display the city's salary history poster. We did not verify other California cities' rules.
The "what do you make now?" moment: a script
The question usually comes from one of three directions: you are tempted to ask it, the candidate offers it, or the client asks you for it. Wording for each:
Instead of asking
"The range for this role is $120,000 to $145,000 base, plus the standard bonus plan and benefits. What are you looking for in your next role, and how firm is that number?" (Example figures.)
When the candidate volunteers it
"Thanks for sharing. I don't need your current pay, and we set offers from the range and the role, not from what you earn now. What matters is what you're looking for. Where in that range would you be comfortable?"
Then record the expectation, not the current salary. California allows the employer to consider a volunteered figure, but writing it into the ATS or the submittal invites everyone downstream to anchor on it, which is the disparity risk 432.3(k) points to. See what not to write in interview notes.
When the client asks
"I don't ask candidates about pay history; in California the law applies to us when we ask on your behalf. Her expectation is $135,000 base, and she's flexible on bonus. That's within the range you gave me."
When the candidate asks why you won't ask
"California doesn't allow employers or recruiters working for them to ask, and honestly the range is a better starting point for both of us."
A California checklist for recruiting desks
- Remove current and previous salary fields from applications, intake forms and ATS required fields for California roles and candidates.
- Get the pay scale from the client at intake, in writing, before any posting or outreach.
- Share the range on the first substantive call and ask for expectations only. Wording is in salary expectation questions.
- Do not ask references or former employers about pay, and tell background check vendors to exclude it.
- If a number is volunteered, record the expectation, not the history, and do not pass the history to the client.
- For San Francisco employers, display the city poster and do not disclose former employees' pay on reference calls without authorization.
For how California compares with other states, including those that do not allow using a volunteered number at all, see the salary history ban states list.
Questions people ask
Can a recruiter ask a California candidate what they make now?
No. Labor Code 432.3(b) bars an employer from seeking salary history, including compensation and benefits, orally or in writing, personally or through an agent. A recruiter asking on a client's behalf is the agent the statute describes.
What if a California candidate tells me their salary without being asked?
Section 432.3(i) lets the employer consider or rely on salary history the applicant disclosed voluntarily and without prompting. Section 432.3(k) adds that prior salary can never justify a pay disparity under the Equal Pay Act, so relying on it still carries risk.
Can I ask a California candidate about salary expectations?
Yes. Section 432.3(j) says nothing in the section prohibits asking an applicant about their salary expectation for the position they applied for.
Does the California ban apply to small employers?
Yes. The salary history rules apply to all employers, including state and local government employers and the Legislature, under section 432.3(g). Only the duty to put a pay scale in job postings has a 15-employee threshold.
Does the ban cover internal candidates?
No. Section 432.3(m)(2) defines an applicant as someone not currently employed by that employer in any capacity, so an existing employee moving to a new role is outside the salary history rules.