(TND) — New laws in some states mean more prospective employees will know what a job pays before they even apply.
This move to pay transparency is undoubtedly good for applicants, and there might even be some benefit to the employers, experts say.
California Gov. Gavin Newsom signed a bill last week that requires the disclosure of salary ranges on job listings and expands pay data reporting requirements.
Colorado enacted a similar law last year, and New York's lawmakers passed a pay transparency law that awaits Gov. Kathy Hochul’s signature.
“It really does move the power to the employee,” said Jason Habinsky, chair of the Labor and Employment Practice Group at law firm Haynes Boone.
The laws could make the job hunting and hiring process more efficient.
Job applicants in the select states will be able to see what a position pays – at least a range – before they go through the time and effort of applying.
Advocates also hope these laws close existing pay gaps. In California, Newsom signed the pay disclosure bill along with other legislation meant to advance gender equity and protect the rights of women.
“This really levels the playing field and allows those who may have been in groups that were subject to pay disparity to now essentially have full disclosure from employers as to what a potential job may pay,” Habinsky said.
Habinsky expects a “domino effect” of other states adopting similar laws involving pay transparency.
Zoe Cullen, assistant professor of business...
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