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Saturday, September 26, 2026

Will pay transparency laws force employers to overextend budgets? - Employee Benefit News

Pay transparency laws are beginning to sweep the nation. As more states and locales enact legislation, employers may be struggling to manage these new rules amid an uncertain job market and a looming recession.

California, Washington and Rhode Island's pay transparency laws went into effect at the beginning of 2023. Employers in those states will be forced to be more transparent about their wages for both filled and available positions within their companies, and may face a new set of challenges as the year unfolds.

"[Employers] have to be ready to start having those conversations with employees about what the range for their job is," says Jesse Meschuk, senior adviser with compensation consultancy Exequity. "They'll get questions like, 'What does this mean? What's the plan to help me get further up the range? How did you come up with this range? How was it developed? How do I compare to my peers?'"

Meschuk is based in California, where employers with more than 15 employees must put a "reasonable salary range" in every job posting, as well as maintain job titles and wage history for three years after somebody leaves any given position. If a company has more than 100 employees, the law will require companies to compile and submit a pay equity report to the state beginning this spring.

"Companies will have to really [be strategic] about where they want to be when you're sharing ranges. Are they going to be pretty broad? Are they going to be more narrow?" Meschuk says. "If...



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