Pay transparency is quickly becoming a major focus in the U.S. While there is no comprehensive federal pay transparency law in the U.S., states and municipalities have been implementing a variety of laws designed to address wage gaps, boost equality, and increase accountability in hiring practices. The trend is expanding, and as we move into summer, more states have regulations that are set to take effect and will have a significant impact on employers and job-seekers alike.
In addition to the new laws going into effect that are addressed below, employers should actively monitor pay transparency developments in their states of operation to ensure compliance, as the trend is likely to continue spreading across the country.
Pay transparency laws generally require employers to disclose salary ranges, compensation details, and benefits in external and internal job postings, at a specified point during the hiring process, and/or when employees request such information. In some cases, they also prevent employers from asking candidates about their salary history or discriminating against applicants who decline to provide such information. These laws are part of broader efforts to reduce discrimination with respect to wages based on gender, race, or other impermissible factors and to ensure fairness in hiring and compensation processes.
The idea is simple: If everyone knows what the pay range is for a role, employers are held accountable for their...
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