Transparent piggy bank

On September 27th, California Governor Gavin Newsom signed sweeping pay transparency requirements for California employers into law, following similar legislative developments in Colorado, Washington, and New York City. The bill requires employers of 15 or more employees to include salary ranges in all job listings, and those who employ more than 100 people to submit annual pay analyses by race, gender, and ethnicity, data that California would make public.

As the national pay transparency movement continues to gain traction, other states and municipalities are expected to follow in California’s footsteps, including New York, whose governor has a similar bill awaiting her expected signature. Certainly, pay transparency is more than a passing trend, rather a top priority for state legislatures and their constituents alike across America. As a result, employers are faced with the need to adopt more transparency, in a job market where the 10 million openings outweigh the 5.8 million unemployed Americans. While implementing more transparent policies may be a challenge for some employers, those who embrace the movement can gain a considerable advantage both in employee retention and the war for talent.

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