Bill Overview
Title: Salary Transparency Act
Description: This bill requires employers to disclose the wage or wage range in the public or internal posting of an employment opportunity. This includes the range of wages or salaries and other forms of compensation reasonably expected to be offered for the employment opportunity. Violations of these requirement are subject to civil penalties, statutory or actual damages, and injunctive relief as appropriate.
Sponsors: Del. Norton, Eleanor Holmes [D-DC-At Large]
Target Audience
Population: Global workforce and job seekers
Estimated Size: 170000000
- The bill affects both employers and employees, primarily focusing on transparency in wage announcement.
- Employees in regions where salary transparency is not already legislated will be particularly impacted.
- The act may influence individuals seeking new employment opportunities as it provides them with crucial wage information before applying.
- All employed and potential workforce members are impacted, as it changes the hiring landscape they operate within.
- Government and legal entities may also be indirectly impacted due to the enforcement and monitoring of compliance.
Reasoning
- The Salary Transparency Act primarily affects employees and job seekers because it provides them with more information about potential salaries and helps reduce wage gaps. However, the impact will vary depending on geographic location and industry.
- In regions without current salary transparency laws, the policy will have a higher impact. Furthermore, industries with historically opaque wage practices may see widespread changes, while sectors that already publicize pay ranges may experience minimal effects.
- Employers will need to adjust their job postings and could experience increased recruiting costs, while employees may feel more empowered to negotiate salaries.
- Potential benefits include improved job match quality and reduced wage disparities, primarily benefiting underpaid groups such as women and minorities.
- The overall budget places constraints on enforcement, suggesting compliance monitoring will focus on major metropolitan areas where the impact would be greater due to higher job density.
Simulated Interviews
Software Engineer (New York, NY)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I support this policy because it provides transparency and could help reduce gender wage gaps.
- Knowing the salary range upfront makes the job application process more fair.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
HR Manager (Los Angeles, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This will increase our administrative workload, but it's an important step toward fairness.
- I worry about the costs of upgrading our systems to include salary ranges.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Recent College Graduate (Austin, TX)
Age: 22 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I think this policy will help me assess job offers better and compare them more effectively.
- It could make entry-level job searches less daunting.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
Factory Worker (Detroit, MI)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- While the transparency is good, I'm worried it won't affect established jobs like mine much.
- Could help new generations more than those like me nearing retirement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 4 |
Marketing Specialist (San Francisco, CA)
Age: 31 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I hope this leads to more competitive offers and helps hold companies accountable.
- It might create some discomfort but it's needed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Nurse (Chicago, IL)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Knowing salary ranges upfront could make nursing positions more attractive.
- The transparency could also bring more accountability and fairness.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Construction Worker (Phoenix, AZ)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- I see this as a positive move, especially for non-unionized workers.
- It's a step towards transparency but enforcement could be challenging.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Small Business Owner (Seattle, WA)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- My biggest concern is the potential compliance costs and resources needed.
- Transparency is important but so is keeping small businesses viable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Financial Analyst (Miami, FL)
Age: 34 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- This transparency is a useful tool for diversity initiatives.
- May encourage fairer pay scales and more equitable workplaces.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Retired Civil Servant (Columbus, OH)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 3/20
Statement of Opinion:
- I believe it will help my kids as they enter the job market.
- I'm curious about how this will actually be enforced across different sectors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $525000000 (Low: $420000000, High: $630000000)
Year 3: $551250000 (Low: $441000000, High: $661500000)
Year 5: $605375000 (Low: $484300000, High: $726450000)
Year 10: $688326875 (Low: $550434000, High: $826814250)
Year 100: $2077395484 (Low: $1661916387, High: $2492874581)
Key Considerations
- The heterogeneity of existing wage transparency laws across states could complicate standard implementation.
- Economic conditions, such as unemployment rates, could influence the magnitude of impact on the workforce.
- Business resistance due to increased administrative burden and potential wage escalations may alter expected outcomes.
- Potential for salary adjustments creating inflationary pressures, especially in industries with previously low wage transparency.