The Rise of Pay Transparency Laws
In recent years, the push for fair compensation practices has gained momentum. States like California, Colorado, Washington, and New York have passed laws requiring employers to include salary ranges in job postings. These changes aim to close wage gaps and ensure candidates, regardless of gender, race, or background, have equal access to compensation information.
The Business Case for Transparency
Transparent pay practices build trust, shorten time-to-hire, and enhance the candidate experience. They also help standardize internal compensation, reduce wage disparities, and improve retention by promoting fairness and accountability.
What Employers Should Do Now
- Conduct internal audits of pay practices
- Establish clear salary bands by role
- Include ranges in all job postings
- Communicate compensation philosophy company-wide
Key Takeaway
Salary transparency isn’t just about compliance—it’s a strategy to build equity, trust, and stronger teams.
