What are pay transparency laws and why do they matter?
Publisher: Tesseon
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For years, employee compensation has been kept under wraps. Discussing salaries was taboo, and employers disclosed pay details only at the offer stage. Recently, however, a surge of laws mandating salary range disclosure and prohibiting salary history inquiries is reshaping this landscape, posing both challenges and opportunities for organizational leaders. Significant movements such as #MeToo, Black Lives Matter, and the COVID-19 pandemic have highlighted the chronic pay disparities faced by women and minorities in the U.S. These events have prompted a wave of legislation requiring employers to disclose salary ranges for open positions to reduce pay disparities.
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