California Gov. Gavin Newsom and NY Gov. Kathy Hochul have bills at their desks that would require companies to post pay ranges on job advertisements.
For decades, lower-paid workers have been kept in the dark about how much their colleagues were earning. Lilly Ledbetter, whose suit against Goodyear Tire led Congress to pass the 2009 Fair Pay Act in her name, said the veil around salaries was a major factor in keeping her earnings lower than male managers’ when she worked for the company from 1979 through 1998.
In recent years, several states, including California, have moved to end some of the secrecy, requiring companies to provide pay information during the interview process, though, in some cases, only on request. Some have also moved to bar companies from asking prospective employees their salary histories, which tends to lock people into lower pay from their previous jobs.
But as the state began cracking down and other states and cities moved to adopt the Colorado rule, anywhere-but-Colorado postings have all but disappeared. Scott Moss, director of the Colorado division of labor standards, said the number of such postings dropped from more than 900 to a few dozen after his office sent letters. Only three companies have been fined under the law, and only after multiple warnings.
Experts and employment specialists say larger companies are likely to respond to the newest laws by posting salary ranges for all jobs, regardless of where they are, to simplify their hiring process. Microsoft, for example,as it meets the requirements in Washington state, set to take effect Jan. 1. Employers are more likely to say no to raise requests if they know the salary will eventually become public because they can argue more credibly that they will then face pressure to offer the same raise to other employees, Cullen said.
Hendrickson, of Syndio, said posting pay ranges also helps employers think harder about which employees are really worthy of salaries that exceed the pay range because of skill, training or experience.
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