Musings on Pay Transparency – What do Practitioners See Happening?
Abstract
New York State is poised to implement the Pay Transparency Act (the “Act”), a law aimed at “address[ing] systemic pay inequity and discrimination through increased pay transparency by requiring employers to disclose critical information about compensation and benefits to applicants and employees immediately upon posting a new job opportunity.” Though the concept of transparency in pay and job postings required by the Act may seem new to many, New York is actually not a trendsetter in this space. In 2016 California became the first U.S. state to adopt such a law and several states have followed suit thereafter. California’s current pay transparency law requires employers to provide pay ranges for jobs when candidates ask for them after their first interview. After it took effect, 16 other states enacted pay transparency laws. These laws, broadly speaking, give applicants access to salary ranges for new job opportunities.