In an era where transparency and fairness in the workplace are more valued than ever, states with pay transparency laws are leading the charge toward a more equitable employment landscape. Across the United States, an increasing number of states and cities are adopting legislation that mandates employers to disclose salary ranges in job postings, a movement that reflects a growing demand for openness in the hiring process.
This push towards transparency not only aims to combat wage discrimination but also to empower job seekers with the information they need to make informed decisions about their employment opportunities.
In cities, counties and states with pay transparency laws, these regulations mandate employers to disclose compensation information, such as salary ranges, to both potential and current employees. These laws vary by jurisdiction but commonly include the obligation to post salary minimums and maximums in job advertisements, provide pay scale information to current employees upon request, and prohibit retaliation against employees for discussing wages.
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The trend toward pay transparency is gaining traction for several reasons. It promotes equality by helping to close the gender and racial wage gaps, enhances employee engagement by fostering trust between employers and their workforce, and aids in talent attraction and retention by setting clear expectations from the outset.
As more job seekers prioritize transparency and fairness in their job search, companies that embrace these practices are increasingly seen as employers of choice.
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To date, nine states have pay transparency laws. These include:
In addition to the states listed above, some cities and counties have pay transparency laws in place. These include the following:
Employers posting remote job opportunities are strongly encouraged to disclose salary details upfront to ensure compliance with pay transparency laws, which vary by state. Given the national reach of remote job postings, there's a high likelihood of attracting candidates from states with pay transparency laws that could apply to your business.
By proactively disclosing salary information, employers can navigate the complex legal landscape while fostering a transparent and equitable hiring process.
The current list of states with pay transparency laws does not include Kansas or Missouri, and legislation does not appear to be on the horizon, but small businesses in the region still should prepare for the possibility that full salary disclosure in job advertisements could become a future standard practice.
For Kansas and Missouri employers posting remote work positions that can be filled by candidates across the nation, pay transparency laws must be followed. Consult with an Axcet HR expert or review a current list of states with pay transparency laws and ensure your job posting complies with the varying laws as they apply to your business.
The tight labor market is translating to more negotiating power for job seekers who are in short supply and high demand. As a result, candidates will likely come to expect employers to post salary ranges, even in states that don’t mandate it.
Consider proactively sharing salary information with job candidates to distinguish their companies from other prospective employers.
Salary has long been considered a taboo subject in the workplace, but that is changing as worker shortages and gender and racial wage gaps persist. Black men earned 87 cents for every dollar a white man earned between 2017 and 2019, and women made 83 cents for every dollar men made in 2020.
Salary transparency not only encourages pay equity, but also can create advantages for small businesses competing for top talent in a tight labor market. Taking a don’t-ask-don’t-tell approach could do more harm than good, while proactively sharing compensation information can help employers succeed in a new employment era where job candidates can make more demands.
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Navigating the evolving landscape of states with pay transparency laws becomes especially complex when your business operates in multiple states or accommodates remote work positions, attracting candidates from across the nation. Ensuring compliance while fostering an equitable and transparent hiring process requires nuanced understanding and expert guidance.
Axcet HR Solutions, a certified professional employer organization (PEO) headquartered in Kansas City since 1988, offers the seasoned expertise needed to navigate these challenges. With Axcet's support, your business can comply with state-specific pay transparency laws and implement HR best practices tailored to your unique operational needs. Schedule a consultation with one of our HR experts today to protect your business from legal complexities and to cultivate a transparent, fair recruitment process.
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