Companies have fought to keep employees in the dark about salary levels. But that's changing, thanks to a nationwide wave of 'pay transparency' laws. Subscribe to thisisinsider to read the full story:
shows that greater transparency narrows pay inequities based on race and gender. That on its own is an outcome worth celebrating. But I think these new laws could end up doing even more. If enough states enact pay transparency, it could forge a new national norm — one in which companies are as upfront about salaries as they are about prices. Think about it: Every business, from tiny boutiques to online giants like Amazon, tell you exactly how much each of their items costs.
The first state to compel employers to disclose salary information to job candidates was, predictably, California. As of 2018, employers in the state have been required to disclose a job's pay scale to applicants after their initial interview. But there's a twist: The applicant has to request the information. People can only take advantage of the law if they know about it — which, anecdotally, no one does.
Most employers who received an enforcement letter have agreed to stop excluding Colorado applicants in their job postings. Those who don't respond will be subject to a formal investigation — which could result in fines as high as $10,000 per violation."I'm already seeing Coloradans act surprised when a job doesn't post the pay," Moss told me."It's becoming the norm in Colorado really quickly, because the law and compliance have gone very well.
"When Colorado passed, it seemed like a bit of an anomaly," said Christine Hendrickson, who co-chairs a pay equity group for the law firm Seyfarth Shaw."But now we're seeing this ramp-up with new laws that are proactive. It's requiring employers to think really deeply about how they can comply with all these different laws.
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