This article will help you understand the why behind Fair Work (FW) 2.1 in the B Lab Standards V2, which requires companies not to request wage histories from job applicants.

Why does FW2.1 exist ? 

FW2.1 requires companies to have a policy of not requesting wage histories from job applicants. This advances one of the Fair Work Impact Topic objectives to “promote wage transparency” and help eliminate pay disparities.

Requesting wage histories raises concerns because it:

• Anchors offers in past discrimination

If an applicant was underpaid in the past due to gender, race, migration status or other bias, using their previous salary as a benchmark increases the chance they continue to be underpaid in the future. FW2 is explicitly concerned with identifying and eliminating pay disparities, particularly gender wage gaps.

• Undermines fair, role‑based wage setting

FW2 expects companies to explain how wages are set and what benefits workers are entitled to, and to back this with wage scales and structured analysis (e.g. gender wage gap, living wage for lowest‑paid employees). Linking offers to previous pay instead of to internal wage scales undermines this logic. 

• Reinforces information asymmetry and reduces transparency

The Fair Work Impact Topic emphasises that fair wage practices should allow workers “to understand their pay and rights, and to hold their employer accountable for fair and equitable wage practices.”  When the employer uses private prior salary information, it increases the power imbalance and makes it harder for the candidate to assess whether the offer is fair.

In short, FW2.1 is one of the mechanisms that supports the broader Fair Wages architecture (wage scales, gender wage gap analysis, living wage, etc.), by requiring companies to base pay decisions on the role and their own structure, not on an applicant’s history. 

How to implement FW2.1 in practice

The standards expect a clear policy as well as evidence that it is implemented in recruitment practice. 

1. Adopt a written policy

The documentation guide specifies that evidence includes a “policy, procedure, or handbook document that confirms the commitment” not to request wage histories from job applicants, and that it covers the FW2.1 compliance points. 

In practice, your company should:  

• Add a clause to your  recruitment policy or procedure, or hiring handbook stating that the company does not request or use previous salary information at any stage of recruitment.

• Ensure the policy applies to all relevant channels (direct hires, internal mobility where relevant).
  
  

2. Remove wage history questions from all processes

To align practice with policy, your company should systematically remove any request for previous salary from:

• Job application forms and applicant tracking systems.

• Interview and screening scripts or guides used by HR and hiring managers.

• Standard email templates to candidates and external recruiters.

3. Train human resources (HR) and hiring managers

FW documentation expects companies to show how they communicate wage‑related information and policies to “relevant workers” and staff. Companies should therefore:

• Explain why wage histories are not requested (link it to fair wages and equal pay) in HR / hiring manager training.

• Include the FW2.1 policy in onboarding for anyone involved in recruitment.

• Clarify that if salary expectations are discussed, they should be handled as forward‑looking (e.g. expected range) and anchored in the company’s wage scales and pay bands, not in past pay.

Tips: Asking about preferred wages

• Asking for a preferred wage is acceptable, but only after the company communicates the applicable wage scale or pay band.

• This ensures that salary discussions are transparent, fair, and forward-looking, rather than perpetuating past inequities.

4. Anchor offers in internal wage structures

Because FW2 includes requirements for wage scales, gender wage gap measurement, and living wage actions for lowest‑paid employees —which vary depending on company size— companies should adapt these tools as the basis for offers: 

• Use wage scales and role‑based bands to determine the salary range.

• Check whether the offer is consistent with existing wage practices, such as a collective bargaining agreement.

• Periodically review accepted offers by gender and other relevant dimensions to ensure the policy is effectively reducing disparities, in line with broader FW2 expectations about understanding and addressing gender wage gaps.

5. Prepare evidence for B Impact and audit 

Under FW2.1, auditors will typically look for:

• The policy, handbook or procedure that explicitly states the company does not request wage histories.

• Screenshots or templates (application forms, ATS screens, interview guides) to show wage history is not asked.

• Records of communication to relevant employees (e.g. HR team email, intranet announcement, training deck).

• Interviews with employees involved in recruitment to confirm that in practice they do not request or use wage histories.