Compensation transparency

Wage transparency, salary compensation, and compensation transparency generally, involves disclosure of employee compensation amounts, either among other employees in an organization, to owners, to government regulators, or to the public.

Some jurisdictions have pay transparency laws intended to prevent discrimination based on demographics like gender or race. These laws require job listings to give a salary range for the position. To eliminate unintentional discrimination and treat employees more ethically, some organizations have adopted radical transparency, disclosing all employees' compensation internally and either equalizing pay for similar positions or justifying differences.

Some jurisdictions mandate disclosure of executive compensation to shareholders, in an attempt to reduce excessive compensation.

In the United States, the National Labor Relations Act protects the right of employees to discuss compensation without retaliation from their employer.

Laws Regarding Compensation Transparency

The following laws are word for word from it's source in order to maintain accuracy and integrity of the law.

Statewide Laws

California:

"Upon request, all employers must:

• Provide an applicant with the pay scale for the position they applied for (even before the initial interview).
• Provide an employee with the pay scale for their current position.

An employer with 15 or more employees must include the pay scale for a position in any job posting. If the employer engages a third party to announce, post or publish a job posting, the employer must provide the pay scale to the third party. The third party is required to include the pay scale in the job posting."

Colorado:

"In each posting for each job opening, all employers must disclose:

• The rate of compensation (or a range thereof); including salary and hourly, piece, or day rate compensation; that the employer is offering for the position.
• A general description of any bonuses, commissions or other forms of compensation offered for the position.
• A general description of all employment benefits offered for the position."

Connecticut:

"All employers must:

• Provide a job applicant with the wage range for a position the applicant is applying for, upon the earliest of the applicant's request or before or at the time the applicant is made an offer of compensation.
• Provide an employee with the wage range for their position upon their hiring, a change in the employee's position with the employer or the employee's first request for a wage range."

Maryland:

"Upon request, all employers must provide an applicant with the wage range for the job for which the applicant applied."

Nevada:

"All employers must:

• Provide the wage or salary range or rate for a position to a person who has completed an interview for the position.
• Provide the wage or salary range or rate for a promotion or transfer to a new position to an employee who has applied for the promotion or transfer, completed an interview for the position or been offered it and requested the wage or salary range or rate."

Local Laws

New Jersey local laws:

Jersey City, New Jersey:

"Employers with five or more employees that advertise by any means to provide notice of employment opportunities, transfers or promotions must disclose a minimum and maximum annual salary or hourly wage in the posting or advertisement."

State and Local Laws

New York state and local laws

"Effective Sept. 17, 2023, employers with four or more employees must, when advertising a job, promotion or transfer opportunity, state the minimum and maximum annual salary or hourly wage for the position. For positions compensated solely on a commission basis, employers can comply with the law by including a general statement that compensation will be based on commissions. Employers must also disclose the job description for the position, if one exists.

The law applies to advertisements for positions that will physically be performed, at least in part in New York, as well as jobs that will physically be performed outside of New York but report to a supervisor, office, or other work site in New York."

Albany County, New York

"Employers with four or more employees are required to state the minimum and maximum salary or hourly wage for a position when advertising a job, promotion or transfer opportunity. This requirement does not apply to temporary jobs at a temporary help firm."

Ithaca, NY

"Employers with four or more employees whose standard work locations are in the city of Ithaca must include the minimum and maximum hourly or salary compensation in each posting for a job, promotion or transfer opportunity. The ordinance does not apply to job advertisement for temporary employment at a temporary help firm."

New York City, New York

"Employers with four or more employees (including independent contractors but excluding temporary employees hired through temporary help firms) are required to disclose the expected salary range for a position on internal and external job listings. Positions that cannot or will not be performed, at least in part, in the city of New York are excluded."

Westchester County, New York

"Employers with four or more employees must include the minimum and maximum salary in each posting for a job, promotion or transfer opportunity. The law applies to a posting for positions that are required to be performed, in whole or in part, in Westchester County, whether in an office, in the field or remotely. It does not apply to job advertisement for temporary employment at a temporary help firm.

The law will become null and void on the day that similar statewide legislation goes into effect. As such, the Westchester County law will no longer apply as of September 17, 2023."

See also

• Equal pay for equal work#Transparency laws