Employment Law

Personal Injury

What is the current status of pay transparency?

On Behalf of | May 7, 2023 | Wage And Hour |

What a company pays one of its workers varies. Someone’s experience and education often has a major impact on how much an employer offers them for a specific role. A company may even offer a pay range that allows for tens of thousands of dollars in difference in salary for people in the same position in some cases.

Many employers do not disclose what they offer for different roles in their job listings, making it difficult for talent to know whether an employment offer is worth their time. Pay transparency efforts have begun to reverse that trend, with more employers every month moving to include salary ranges and estimated pay in new job postings.

Pay transparency has begun building momentum

Many workers view having access to information about the salary range for a position as key to not only their own professional success but also wide-scale pushback against pay inequity. As such, some jurisdictions in the United States have begun adopting laws that require pay transparency.

In late 2022, New York City implemented a law requiring that employers provide a “good faith salary range” for job listings. There are similar laws elsewhere that have put pressure on employers to disclose what they pay for different positions. In California, any company with 15 or more workers must publish a salary range or pay scale with job listings. Washington requires that all employers include pay range in job postings, and Colorado also has a pay transparency law on the books.

Colorado’s law, on the book since 2021, was definitely a starting point for this new trend. Companies operating in areas with pay transparency rules or offering remote work may disclose more financial information about positions to comply with laws and attract the best talent possible.

How pay transparency helps workers in Missouri

The law has yet to change in the state, but local workers may benefit from changing corporate practices. Obviously, knowing the salary range for a position helps people target their job search efforts more effectively.

Additionally, they will be in a better position to negotiate with recruiters or human resource professionals during the onboarding process. When someone knows the range of pay for a position at a company, they can leverage their own credentials to secure the best offer possible. It will also become easier for workers to identify when their company has not employed appropriate pay practices or may have engaged in wage discrimination those who know their rights and have an understanding of current company practices are in a better position to advocate for themselves.

Seeking legal guidance and filing a wage claim can sometimes be an appropriate response to discovering that a company pays workers less because of factors like their race or sex.

FindLaw Network