Pay Equity: An Overview for Executive Search Pay Equity | Page 11

Q. Can we deselect candidates who don’t volunteer salary data?
No, this is specifically prohibited.
Q. What should a search firm do with historic candidate salary data on their
database?
It’s permissible to hold this data, providing it was acquired prior to being appointed on a
search. However, that data must not be passed to the client (employer) and should not be
used by the search firm to assist in determining salary or selection. Given the
legislation is currently state dependent, it may be best to hold the data now and ensure
staff are made fully aware of specific location restrictions. If (when) the legislation attains
wider implementation or Federal status then it may be necessary to cleanse the database
or use masking techniques.
Q. Is it permissible to verify other non-salary employment data with a former
employer?
Yes, save that if this processes discloses salary it shall not be used to determine
compensation for the prospective candidate.​
Q. What should search firms record on their database?
The initial move appears to be towards recording the compensation package desired or
range sought by the candidate. Again, this should not be used to determine
compensation offers or selection. And it may be necessary to demonstrate what data was
used to determine an offer, to show this has been excluded.​
Q. What are the penalties for non-compliance?
These range from $100 to $250,000 depending on the location and number of offences.
Q. What can Invenias do to help?
You can use Invenias to manage and support your policies from implementing salary field
warnings to avoid inadvertent disclosure of data, through to full Data Privacy style consent
and communication management.​