Actions to Drive Pay Equity

Regulations around pay equity are not new, they’ve been around since 1963. However, more states and cities are taking actions to support progress towards actually achieving pay equity. Pay transparency requirements and salary history bans continue to pass into law and I don’t see the trend slowing down. Employers who are covered need to ensure that they are compliant, and those employers that are not yet covered need to consider what it could look like for them in the future.

Pay transparency requirements vary, but one common approach is that the wage or salary, or a range, must be included in job postings. Even if it’s not required in your location, this is a great practice that provides transparency and saves time. Job seekers usually have a number in mind, the minimum they will accept to perform that job. When recruiters are screening candidates, there is often a discussion about salary expectations. Sharing a hiring range in the posting cuts out the extra steps. If you are offering $60k and the candidate won’t take less than $100, share it up front, save time and move on.

It used to be common practice for employers to ask applicants their current or most recent salary and use this number in making decisions about their offer. There are locations where you may no longer legally ask about past salary. Generally, you may still ask about expectations. My advice is to identify what you are willing to pay, ideally based on market data and your pay philosophy. Then, stick to it. This is especially important if you have more than one employee performing a similar job.

If you are not sure about pay transparency or salary history rules in your area, reach out. Guerrilla HR is here to provide guidance on where to start as we work to close the pay gap.