Dr. Nathan Kadlecek, PT
Is a physical therapist committed to providing high quality health information, largely focused on lower back pain and the gross overuse of diagnostic imaging, medication, surgery, low quality treatment methods, and the over-diagnosis of pain conditions. He's also a powerlifter, pain nerd, macro-scale thinker, and wants to help you think differently about pain, healthcare, and life.
Does it hurt? Then no, you shouldn't squat in the MANNER in which you're doing it.
You should still try to change a few things up though...
1. Decrease the weight
2. Change your stance width
3. Change from low bar to high bar or vice versa.
4. Try front squats or goblet squats
5. Shorten your range of motion (don't go down as deep)
6. Change your tempo. 3 seconds down, 3 seconds up. This will also force you to reduce the weight, too.
Those are my most practical tips to stay squatting while you're dealing with back pain.