Employers in these Three States Are Now Required to Post Salary Information on Job Listings

Three state laws require employers to publish salary ranges in job The listings went into effect the first day after the start of the new Year.

California, Washington and Rhode Island have now made it mandatory for prospective employees to be provided with payment information. An estimated 71% of companies post pay ranges in job notices, according to an analysis From the Indeed job listing platform

California’s Senate Bill 1162 requires California employers to provide health insurance. “the pay scale for the position in which the employee is currently employed” Employers who have 15 or more workers may offer to provide this information upon request “the pay scale for a position in any job posting,” According to a summary The law.

The statute, which will impact Disney, Uber, Apple, and other leading corporations, requires firms to submit a pay data report to the state’s Civil Rights Department that includes “the median and mean hourly rate for each combination of race, ethnicity, and sex within each job category.”

According to the Equal Pay and Opportunities Act, Washington, employers must adhere to these guidelines. “disclose in each posting for each job opening the wage scale or salary range, and a general description of all of the benefits and other compensation to be offered,” According to the text The law also went into effect January 1, and is only applicable to companies with at least 15 employees. This new law will be applicable to companies like Amazon, Microsoft, Starbucks, and Microsoft.

Rhode Island’s Pay Equity Act of January 1 also requires that “during the course of employment, upon an employee’s request, an employer shall provide the wage range for the employee’s position,” according to the bill’s text. Companies must provide payment information upon request to applicants and cannot retaliate against employees, current or future, who inquire about payment information.

Advocates of salary transparency legislation argue that giving pay information reduces disparities, and encourages more applications.

“Salary is one of the most important pieces of information that job seekers value when looking at a job,” Indeed, Chief People Officer Priscilla Coranteng made a comment in the analysis. “And wanting more insight into expected salary ranges of a job is one of the top pieces of feedback that we receive from job seekers.”

Harvard University research has shown that overall wages can be reduced by salary transparency laws in certain circumstances. “employers credibly refuse to pay high wages to any one worker to avoid costly renegotiations with others under transparency.”

“Our model predicts that transparency reduces the individual bargaining power of workers, leading to lower average wages,” According to a study Published last year. “In situations where workers do not have individual bargaining power, such as under a collective bargaining agreement or in markets with posted wages, greater transparency has a muted impact on average wages.”

As the job market is reeling from a shortage of workers, the new pay transparency legislation goes into effect. After the lockdown-induced depression, labor force participation declined. This has led to an increase in unemployment. decades-long trend Engagement in the workforce is declining. According to the study, this metric decreased from 63.4% in Feb 2020 to 60.2% by April 2020. data From the Bureau of Labor Statistics. It was 62.1% in November 2022.

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