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Proposed Bill Would Increase Wage Transparency Across U.S.

A new bill introduced in the United States House of Representatives would require employers to increase wage transparency for job postings. The bill, dubbed the “Salary Transparency Act,” would force employers to post the wage or wage range for any job posted for people to apply to, whether internally or publicly. This is meant to make it easier for job applicants to know the compensation of the jobs they are applying for before they go through the effort of the application process.

 

What is the Salary Transparency Act? H.R. 1599, also known as the Salary Transparency Act, is meant to make it easier for workers to determine how much money they are likely to make when applying for an open job position. The bill, proposed by United States Representative Eleanor Holmes Norton (D-DC), would make it unlawful for employers to post an internal or public job posting without disclosing a “wage or wage range.” It would also penalize employers who attempt to discriminate or retaliate against an employee who seeks information about the compensation for a job posting. Why is Wage Transparency Important? Wage transparency is important for many employees, as it has become increasingly common for employers to post job listings without this critical information. This has led to a growing trend of employees going through the extensive process of applying and interviewing for a position, only to find out it pays far less than they were expecting. It can also be used to determine if a position is paying the industry average, or if the employer is underpaying its employees. Why Do Employers Oppose Wage Transparency? Employers, on the whole, do not like wage transparency, because it almost inevitably results in them paying their workers more. When employees are unaware of what their coworkers are making, or what their position is being advertised for, it is harder for them to identify whether they are being underpaid or potentially being the victim of discrimination. It also makes it harder for prospective employees to negotiate for higher compensation, since they do not necessarily know what they should be getting paid. How Could This Affect You? If the bill is passed, it could substantially affect your ability to know how well you are getting paid compared to your peers. It could also help you to identify potential discrimination, depending on your wages. It is worth noting that you can already discuss your wages and compensation with your fellow employees, and doing so can help you to determine whether your rights as an employee might have been violated. Steven Mitchell Sack, the Employee’s Lawyer, is a New York employment lawyer with more than 41 years’ experience handling the many aspects of employment law. His new book, “Fired!: Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” is available in hardback, and contains valuable advice on dealing with employment and labor law issues. To purchase the book, feel free to contact Steven Sack at 917-371-8000 or visit the website at legalstratpub.com. To inquire about a legal matter, please feel free to contact attorney Steven Sack at 917-371-8000 or stevensackatty@hotmail.com.

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