Does transparency promote equity? More to the point, does pay transparency promote pay equity?
That’s the goal in California, where a state senator introduced a bill last week that would require employers to disclose salary ranges for jobs they’re trying to fill and to report employee and contractor pay data to the general public.
Pay transparency laws are being seen by equal pay advocates as the next key policy in closing gender and racial pay gaps.
They’re saying it means the next time you’re looking for a job, you might know how much it actually pays—before you’re hired.
Emily Peck reports that a similar law went into effect in Colorado last year, while another is about to start in New York City in May.
Peck says California already requires employers to disclose salary ranges, but only if asked by a prospective candidate.
Jessica Stender, policy director for Equal Rights Advocates, says, "I think the tide is turning in terms of support for stronger pay equity laws."
She noted that employers in the UK have had to disclose pay disparity data for some time now—helping to narrow certain gaps.