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There is growing pressure for employers to be both transparent and competitive with pay for every role in their organization. Several states, including New York and Colorado, already have pay range laws in place that require the disclosure of pay scales to current and prospective employees. This wave of pay disclosure will continue with California, Washington and Rhode Island implementing similar legislation in 2023. Many companies are already disclosing pay rate information, even in areas where they are not required to do so, as they are getting more questions from current and prospective employees.

Most companies are simply not ready for this kind of transparency, either because they’re not sure how to tackle it from an administrative perspective, lack the job architecture, or are afraid of employee reactions when pay is disclosed. Already there are complaints about companies posting outrageously wide salary bands to skirt the spirit of these laws. The potential for dangers exists if current employees feel slighted during tighter labor markets where posted salary ranges increase.

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