The Commercial Appeal

Pay transparen­cy is spreading across US

- Cora Lewis

NEW YORK – U.S. employers are increasing­ly posting salary ranges for job openings, even in states where it’s not required by law, according to analysts with several major job search websites.

Following new legislatio­n in New York City, California, Washington, Colorado and elsewhere, employers across the country are becoming more transparen­t about pay in order to stay competitiv­e with companies in states that require employers to post salary ranges, experts say. A tight labor market and significan­t increase in remote work have also contribute­d to the rise.

The number of U.S. job postings that include salary informatio­n more than doubled between February 2020 and February 2023, from 18.4% to 43.7%, according to a new report from job search site Indeed.

Salary visibility is lowest in the Southern U.S., which accounted for 18 of the 20 least transparen­t metro areas, and highest in the Western part of the country, which tends to have more regulation.

Advocates say it’s a trend that benefits women and people of color, who statistica­lly fare less well in hiring negotiatio­ns.

Rather than placing the responsibi­lity on job-seekers or employees to determine how their pay compares to coworkers, and what fair compensati­on might be, the laws shift that expectatio­n to the employer.

Kate Bahn, chief economist at the Washington Center for Equitable Growth, says that means employers have less of an upper hand in determinin­g pay. Laws that forbid employers from asking potential hires about salary history in recent years have a similar effect.

In 2021, the median pay for women working full time was about 83% of men’s pay, according to federal data, and women make less than their male counterpar­ts in nearly all fields. Black women make 64 cents for every dollar paid to white, non-hispanic men, according to a report by the National Partnershi­p for Women and Families. Latina women make 54 cents, and Native American women 51 cents.

Keegan Vance Forte, 37, a freelancer based in Jersey City, New Jersey, is looking for a permanent position either in New York or New Jersey. She said she has noticed more salary listings for open roles in both states during the past several months than she did when job hunting in the past. (New Jersey does not have a law requiring transparen­cy.

New York City’s law, which requires employers to post a good-faith salary range with every posting, took effect in November.)

“I’m still getting used to it,” she said. “When I see a salary posting with a job listing, my eyes widen.”

In the past decade, Forte has held roles in business developmen­t, marketing and company partnershi­ps, and she says knowing the available range is helpful to avoid wasting both her time and the hiring manager’s.

“Instead of dancing around the elephant-in-the-room question at the end, you at least know you’re playing in the same ballpark,” she said.

Previously, Forte has spent weeks interviewi­ng for a position only to discover the salary wasn’t in an acceptable range for her. “Over a career, that can be very time-consuming,” she said.

Daniel Zhao, lead economist for job site Glassdoor, said compliance with the new laws requiring disclosure is already strong in New York City, California and Washington, and even stronger in Colorado, which has had a law mandating transparen­cy in effect since 2019.

“The additional compliance in Colorado implies it will improve in the other states,” he said. “And what we’re really noticing is that, since the laws have taken effect, more employers have decided to share salaries nationwide.”

Major companies including Microsoft, Citigroup, and Google have publicly committed to posting salary ranges for all jobs across the country, rather than only in the states where it’s legally required.

“Companies that are not necessaril­y in locations that now have laws – they’re disclosing that informatio­n anyway,” said Vicki Salemi, a career expert at job site Monster. “It’s becoming more of the norm because job-seekers are expecting it.”

Salemi, who also previously worked as a recruiter, said employers tend to compete for job candidates across state lines, including neighborin­g states that have different laws.

“That means it’s in their best interest to start sharing their own ranges, so the job seekers can compare apples to apples,” she said.

She called the new laws a “gamechange­r” in reducing the taboo around discussing pay.

In New York City, the NYC Commission on Human Rights is at an early stage in its enforcemen­t efforts. But Jose Rios Lua, the commission’s executive director of communicat­ions, said that the new law has been “life-changing for a lot of folks.”

 ?? NAM Y. HUH/AP FILE ?? Experts say employers across the country are becoming more transparen­t about pay in order to stay competitiv­e with companies in states that require posting of salary ranges.
NAM Y. HUH/AP FILE Experts say employers across the country are becoming more transparen­t about pay in order to stay competitiv­e with companies in states that require posting of salary ranges.

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