According to the National Women’s Law Center, when an employer asks job applicants what their salary expectations are without providing applicants any information about the pay for the position, women are the ones who lose out. They go on to explain that disclosing salary ranges levels the playing field in negotiations, and helps applicants and employees detect and remedy any unjustified pay disparities.
With the persistent gender pay gap in the U.S. holding steady over the last 15 years—and the pandemic widening the gap—states such as California, Washington, Colorado, Connecticut, and New York are turning to pay transparency laws to help reduce the wage gap.
“Wage secrecy has allowed companies to get away with paying different employees different salaries. So by getting rid of the smoke and mirrors around pay, companies can provide a more fair working environment for everyone”, reported The Skimm.
Legislation approved by the New York City Council requiring companies with four or more workers to post a minimum and maximum salary range for any job within the city was approved in December 2021 and was scheduled to go into effect May 15th. As reported by Gothamist, in addition to pushing back the start date [to November 2022], the Council tweaked the bill to clarify that employers get a warning and 30 days to fix their first violation before facing city fines. The law also now clarifies that you can’t sue an employer for not listing salary ranges under the law unless you work at the company.
As the conversation around equal pay continues, could pay transparency be the key to achieving a more equitable workplace for all employees? It’s certainly another piece in the massive puzzle that represents gender equality in the workplace (and beyond).