Pay Transparency Law in the US: What You Need to Know

Let’s address the elephant in the room: Typically, salary has been an awkward topic. But pay transparency laws in several states and cities aim to change that.

Laws in California, Colorado, Connecticut, Maryland, Nevada, Rhode Island, and Washington state mandate that employers disclose estimated salary ranges to candidates either in the job posting or during the interview process.

These mandates regarding transparent pay are in alignment with job seekers’ priorities. According to a Monster poll 98% of job seekers believe employers should disclose salary ranges in their job postings, and more than half (53%) would refuse to apply for a job that does not disclose the salary range.

This data points to the importance of salary overall when pursuing new career opportunities. In fact, Monster’s Future of Work Survey showed that salary protection and fair compensation was the top factor driving career decisions.;

What Is Pay Transparency and How Does It Impact You?

Salary transparency ensures that candidates know the estimated salary range for a job before they invest time and effort into pursing a job opportunity. Sometimes salary ranges are included in job postings, and other times, they’re available upon request before or after the first interview.

Just as you need to know the job title, responsibilities, requirements, and location when you’re searching for a new job, salary is extremely important as well. It’s been that vital missing piece of information for most job seekers—until now.

Apart from being frustrating and potentially leading you to waste time applying for jobs that don’t even cover your minimum life costs, the real impact is much longer lasting. If you’re in the dark about what a job pays when you’re asked about your salary expectations, you might state a figure lower than what the job actually pays. As a result, you could be underpaid.

This can compound and continue for years; when salary history is added to the equation for future jobs and if it’s factored into determining your future pay, this inequity and underpayment effectively never ends.

Avoid this by approaching your job search the same as you would if shopping around for anything else. This means, don’t just worry about being the right product yourself, but make sure you act as a savvy consumer and choose the right job for you.

You wouldn’t add something to your cart without knowing the price first, right? By having access to salary ranges before you apply to a job, you’re making a much more informed decision, influenced not only by what you can afford, but by recognizing your own value as well.;;

How Does the Equal Pay Act Support Pay Transparency?

The Equal Pay Act helps remove the stigma of talking about money by aiming to dramatically increase salary transparency. It is, however, slightly nuanced by state, municipality, and county or town.

As of January 2023, mandates in California, Colorado, Connecticut, Maryland, Nevada, Rhode Island, and Washington state require employers to disclose base salary to job seekers as part of the Equal Pay Act. Meanwhile, 21 other states (including D.C.) prohibit asking candidates about their income from a previous job.

For instance, the Colorado pay transparency law requires employers to list the pay ranges and benefits for every job opening, whereas in Maryland, employers must provide pay ranges to candidates only upon request. The California pay transparency law ensures candidates’ right to know a job’s salary range after a successful first interview. In another example, pay transparency laws aren’t in effect in New Jersey, but in Jersey City employers are legally required to disclose a job’s salary range and benefits.

The second piece of the Equal Pay Act bans employers from asking about your salary history. This, too, varies by state. In Virginia, the salary history field has been eliminated from all state job applications. All of the states that require pay transparency also prohibit asking about previous compensation, however the remaining 15 states that ban asking about prior pay do not mandate salary transparency. ;

Thankfully, even where salary transparency laws are not in place, some companies are voluntarily offering up this information to candidates. For example, in New Jersey although it is not mandated (with the exception of Jersey City), many jobs here will include the range anyway in their listings. The reason for this is that New Jersey employers compete heavily with their neighbors accountable to the NYC pay transparency law.

How to Navigate Pay Transparency Laws

Salary transparency requirements in the Equal Pay Act are great news for candidates, but you need to be able to navigate them effectively in order to use them to your benefit. Although pay transparency shows base compensation or hourly wage ranges, these are still limited to what you may be eligible to earn. Understanding where you sit on the scale can not only help you gain insight about whether it’s the right job for you, but you can also use it as a springboard into negotiations.

If you have a unique skill set, accomplishments, and experiences behind you, you can see the range as a starting point and then negotiate for more. Some companies may keep the ranges set in stone, while others may have more flexibility. Of course, the answer may be no, but you won’t know until you ask. If there’s no wiggle-room in the actual salary range, you could consider negotiating a sign-on bonus and find out if the company pays performance-based bonuses for meeting metrics, performing as a team, and more.

This doesn’t only apply to job seekers. Even if you’re not actively looking, understanding if you’re currently being paid appropriately is important too. Salary transparency helps you to better know your worth in your current role as well as future ones.

If you see roles posted externally at your company that share pay ranges that don’t align with your earnings, talk to your boss, and ask for a raise. Knowledge is power and it’s time-consuming and costly for employers to find your replacement, let alone train and assimilate someone new into the company, so speaking up can really pay off—literally.

Money Isn’t Everything

Ultimately, you’re looking for the right fit in a new job. This might start with salary, but additional factors can also weigh into your decision.

When evaluating an opportunity and employer, remember to look at the bigger picture. This includes potential bonuses, medical insurance, and other benefits, 401(k) matching, PTO, the commute, and company culture, ethos, and values. Thankfully, the Equal Pay Act and changing attitudes around salary transparency put you in the driver’s seat when choosing whether or not to pursue an opportunity.

Take Charge of Your Job Search and Arm Yourself with the Best Advice

Monster’s goal is first and foremost to help you find a job that fits your unique needs. Discover your ideal opportunity when you sign up for a Monster profile today. We have many jobs that include pay transparency in their listings, so start browsing now. Upload up to five versions of your resume and switch on custom notifications so you only see jobs meant for you.

This information is not intended as a substitute for professional legal advice. Always seek the professional advice of an attorney regarding any legal questions you may have.

This article has been adapted from an original article by Monster’s career expert, Vicki Salemi. Vicki has more than 15 years of experience in corporate recruiting and HR and is an author and nationally syndicated columnist.