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2110, 30 Oct 23

Wage Transparency Laws Backfire


State and local pay transparency laws enacted over the last few years have more employers disclosing salary ranges in job descriptions.


Yet, wages aren’t growing as expected. The growth of advertised wages for new hires is slowing, according to a report from job posting service ZipRecruiter — and in some cases, it’s reversing, with companies now posting lower pay ranges.

After two years of increasing wages, some companies are now leaving some jobs unfilled because candidates want more pay than the company is prepared to offer. Still, nearly half, 48%, say they have lowered pay bands for some roles in the past year, ZipRecruiter found. The site surveyed more than 2,000 recruiters and hiring managers this summer.


“Employers are trying to reset candidate expectations,” said Julia Pollak, chief economist at ZipRecruiter.

I don’t think wages should be transparent. There are innumerable factors that go into deciding on a wage. As long as the employer and employee have reached an agreement as to what the wage should be, then it’s nobody else’s business. If I believe that I am being fairly compensated for doing a job, then what business is it of mine if someone doing a similar job makes more? Or less?

I also detest this trend:

In addition to the states and local jurisdictions requiring employers to post salary ranges in job postings, employees have become more open to talking about their pay with their peers.


2110, 30 October 2023

1 Comment

  1. jonnyv

    No where does it say that the Transparency law is responsible for the decreased salary bands. Correlation vs causation. You can say that you don’t think it has had the increased salary that some thought it would, but even then, there are about 1000 other variables that come into this. We are coming off a time when employees had ALL the power and swinging back into a more level playing field for employment. It doesn’t shock me at all that employers want to reset the wage perspective of employees. And with the advent of AI and machines, we are going to see some pretty wild swings and power dynamics in the next decade or so.

    I personally don’t have an issue with the transparency laws. It saves employees (and employers) the time of interviewing candidates just to be far apart on the salary scale. And these are just hiring wage ranges, it doesn’t show what every employee is currently making. I have personally given raises after 3 months, and sometimes not for a year+ for intro IT people.

    GenZ understand that transparency can equate to increased salaries, and they have no issues talking about money. Every generation pushes the workforce to a different direction. People used to wear suit and ties to work. Gen X killed that with the tech boom and it pushed into most other industries. I have never worn a tie to work, only to interviews.

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