Salary transparency has become a growing trend in recent years as more and more states and cities pass laws requiring employers to disclose salary ranges on the job. Currently, 26.6% of the US labor force lives in a state where salary transparency is required by law, with Colorado being the first state to implement this requirement in 2021.
Eight states have already passed salary transparency laws, and another 16 states and Washington D.C. are considering similar laws. If all of these bills pass, nearly half of the US labor force will be entitled to publicly available salary range information. Proponents of salary transparency argue that it is an important step in closing racial and gender wage gaps, which have remained stubbornly persistent over the years.
However, initial research suggests that simply disclosing salary ranges may not be enough to reduce wage disparities. Nonetheless, job-seekers, particularly Gen Z applicants, increasingly expect transparent salary information when considering job postings.