The article “Pay Transparency Goes Primetime With Sweeping New Federal Legislation,” by Joy C. Rosenquist and Denise Visconti highlight the recent developments in pay transparency legislation within the United States. Representative Eleanor Holmes Norton (D-DC) introduced H.R.1599, the “Salary Transparency Act,” on March 14, 2023. This article discusses the proposed legislation, which aims to increase nationwide transparency around pay equity and provide employees with more information about their compensation regardless of company size.

The Salary Transparency Act would require employers to provide more detailed information about employee pay such as the wage range applicable for the position being posted. It would also prohibit employers from retaliating against employees who discuss their pay with coworkers.

H.R.1600 The Pay Equity for All Act of 2023, was also introduced by Representative Norton on the same day. This Act would prevent employers from taking a potential employee’s previous salary or benefits into consideration for determining wages by prohibiting them from inquiring about that information.

These proposed pieces of legislation at the federal level are important steps towards increasing pay transparency and addressing pay equity in the workplace. Providing employees with more information about their pay and requiring companies to disclose their pay ratios, could help to reduce the gender and racial pay gaps within the United States.

Even though it is uncertain whether these bills will pass, the introduction of these laws at a federal level highlights the importance of discussions surrounding pay transparency.

What are your thoughts? Do you believe salary transparency is an important issue or practice for companies?