1 of 5

Be prepared: A Conversation on Wage Transparency Trends in the Workplace

September 21, 2023

2 of 5

Pay Transparency Legislation- Summary

2

Proactive Disclosure

in Job Postings

Upon Request/Job Applicants

California

Connecticut

Colorado

Hawaii

Illinois

Maine (pending)

Maryland

New York

Nevada

Rhode Island

Washington

International laws:

EU Equal Pay and Transparency Directive

3 of 5

Career Progression Disclosure

3

© 2023, Salary.com. All rights reserved.

Colorado

Illinois

European Union

Employers must make good faith reasonable efforts to “announce, post or otherwise make known” all opportunities for promotion to all current employees on the same day and prior to making a promotion decision.

An employer shall disclose and make available to all eligible employees:

  • The requirements for career progression
  • Terms of Compensation
  • Benefits
  • Duties
  • Access to further advancement

An employer shall make known all opportunities for promotion to all current employees no later than 14 calendar days after the employer makes an external job posting for the position1

Employers must provide criteria used to determine pay levels and career progression.

Pay structures must allow workers to determine if they are in comparable situation regarding the value of their work on the basis of skills, effort, responsibility, working conditions and other job related factors

1 except for positions in the State of Illinois workforce designated as exempt from competitive selection.

4 of 5

Career Progression Disclosure

4

© 2023, Salary.com. All rights reserved.

Colorado

Illinois

European Union

Penalty for non-compliance:

  • fines of $500 to $10,000 for each violation

Penalty for non-compliance:

  • fines of up to $500 for a first offense, $2,500 for a second offense, and $10,000 for a third or subsequent offense.

Penalty for non-compliance:

  • Compensation or reparation as determined by the member State (not fixed by an upper limit)

  • Effective Date: January 1, 2024
  • Effective Date: January 1, 2025

Effective Date: tbd – three-year rollout

1 except for positions in the State of Illinois workforce designated as exempt from competitive selection.

5 of 5

Pay Transparency – Pros & Cons

5

Pros

Cons

  • Pay transparency is effectively reducing gender and racial pay gaps
  • Requires more communication and training to explain pay differences
  • Has a positive impact on employee’s perceptions of trust, fairness
  • Requires more time and effort to prepare for and monitor
  • 75% of job seekers are more likely to apply for a job where the salary range is shared
  • Causes employees to negotiate individual deals for other compensation elements (PTO, flexible work schedules, perks etc.)
  • Jobs with pay information receive approximately 30% more started applications per impression
  • Results in pay compression – managers tend to reduce differences in compensation

Sources include: Harvard Business Review, SHRM, LinkedIn, Indeed, Salary.com