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More States Pass Pay Transparency Laws to Close Gender, Racial Pay Gaps

Successful evidence has emerged in States where pay transparency laws have been enacted.

Pay transparency laws are being enacted across the United States to address wage gaps for women and people of color. Massachusetts has become the 12th state to pass such a law, with Gov. Maura Healey, a Democrat, releasing a statement saying, 'It will strengthen the ability of Massachusetts employers to build diverse, talented teams.' These laws vary across States, with some requiring employers to disclose salary ranges in job postings and to current employees, while others mandate disclosure during the interview process. The Colorado shows that posted salaries increased by 3.6% since the law was enacted in 2021. An additional SHRM study found that: 70% of organizations listing pay ranges reported more applications, and nearly two-thirds saw an increase in applicant quality, SHRM research also reveals that 82% of U.S. workers are more likely to consider applying for a job if a pay range is listed.

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More States Pass Pay Transparency Laws to Close Gender, Racial Pay Gaps
Massachusetts is the latest state to enact a pay transparency law. Although some evidence indicates that these laws can help close the pay gap for women and people of color, they can also be open to interpretation, making compliance and enforcement challenging.