Could salary transparency be the key to closing the gender pay gap, reducing pay discrimination and creating a more equitable workforce for all? Well...not so fast.
“We should look at laws like pay transparency as a tool in the toolbox to get to pay equity,” says Rocki Howard, chief people and equity officer at The Mom Project, a digital community and talent marketplace for women. “The challenge is doing it in the right way. That takes quite a bit of work and I’m not sure that people understand the work that sits underneath it.”
Yet as more cities and states push for salary transparency laws, employers may soon be held to task as they put these policies in place. New York City, for example, is joining Colorado and Washington in requiring employers to disclose pay in a job posting. Other states, including Nevada, California and Connecticut, must provide this information upon request from a candidate or current employee.
The New York City legislation — set to go into effect on November 1, 2022, following an initial delay — would mandate that employers with four or more employees post a minimum and maximum annual salary in job postings, according to the New York City Commission on Human Rights. The salary ranges cannot be open-ended, and must include only the base pay and not other compensation, like employee benefit packages.
The legislation has faced pushback from businesses concerned about the burden of implementing this policy. Some small businesses have worried they...
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